A Firm Has Total Assets of $162,000,long-Term Debt of $46,000,stockholders

question 26

Multiple Choice

A firm has total assets of $162,000,long-term debt of $46,000,stockholders' equity of $95,000,and current liabilities of $21,000.The dividend payout ratio is 60 percent and the profit margin is 8 percent.Assume all assets and current liabilities change spontaneously with sales and the firm is currently operating at full capacity.What is the external financing need if the current sales of $150,000 are projected to increase by 10 percent?

• A)$4,220
• B)$54,820
• C)$16,200
• D)$38,700
• E)$8,820

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Definitions:

Allergic Reaction

An immune response to a substance that is normally harmless, resulting in symptoms like itching, swelling, and difficulty breathing.

Antibody

Protein found in the plasma that is responsible for humoral immunity; binds specifically to antigen.

T Cell

A type of lymphocyte that plays a central role in cell-mediated immunity, capable of directly killing infected host cells or activating other immune cells.

B Cell

A type of white blood cell that plays a significant role in the immune response by producing antibodies.