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:

Eyepiece

The lens or group of lenses at the viewing end of a telescope or microscope, through which the observer looks to see the magnified image.

Magnification

The process of enlarging the appearance of an object, typically using lenses or microscopes.

Parfocal Microscope

A microscope designed such that once an object is in focus at one magnification, it remains in focus when the magnification is changed.

Objective Lens

The part of a microscope closest to the object being observed, which focuses light or electrons to create an enlarged image.