Aaron Brother after-tax profit margin is 10 percent, and the company pays out 45 percent...
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Aaron Brother after-tax profit margin is 10 percent, and the company pays out 45 percent of its net income as cash dividends. Its sales this year were $10,000; its assets were used to full capacity and the profit margin and payout ratio are expected to remain constant. The company plans to raise capital using short-term (3-months) loans (or Notes Payables) for its additional fund needed. If sales is expected to grow by 30 percent, what will Aaron Brother's current ratio be after it has raised the necessary capital and financing it with Notes Payables
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