Assume That Fake Stone, Inc

question 82

Multiple Choice

Assume that Fake Stone, Inc. is operating at full capacity. Also assume that all costs, net working capital, and fixed assets vary directly with sales. The debt-equity ratio and the dividend payout ratio are constant. What is the pro forma net fixed asset value for next year if sales are projected to increase by 7.5 percent?

• A)$19,800
• B)$21,070
• C)$23,600
• D)$24,240
• E)$26,810

---

Definitions:

CPP Contributions

Payments made into the Canada Pension Plan by workers and employers to fund future retirement, disability, or survivor benefits.

EI Premiums

Contributions made by employees and employers to the Employment Insurance (EI) program, which provides temporary financial assistance for unemployed workers.

General Credit

Refers to the overall creditworthiness or credit status of an individual or business, taking into account their ability to repay debts and financial obligations.