7. Ivan Industries, Inc (1) has $220,000 in net income for the current fiscal year,...
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7. Ivan Industries, Inc (1) has $220,000 in net income for the current fiscal year, 130,000 in current liabilities and total assets of $800,000. I pays 60% of its net income out in dividends. Ii's current ratio (CA/CL) is 2.0 and has long-term liabilities (debt) of $200,000. Sales and net income are expected to grow indefinitely at the sustainable growth rate (ROE X (1- payout ratio)). Current assets and current liabilities are expected to vary with sales, but net fixed assets, long-term liabilities and owner's equity do not vary with sales. What is I's net new external financing needed? 7. Ivan Industries, Inc (1) has $220,000 in net income for the current fiscal year, 130,000 in current liabilities and total assets of $800,000. I pays 60% of its net income out in dividends. Ii's current ratio (CA/CL) is 2.0 and has long-term liabilities (debt) of $200,000. Sales and net income are expected to grow indefinitely at the sustainable growth rate (ROE X (1- payout ratio)). Current assets and current liabilities are expected to vary with sales, but net fixed assets, long-term liabilities and owner's equity do not vary with sales. What is I's net new external financing needed
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