a dividend of 1 050 was paid and martin wishes to maintain a constant payout ratio n 635971
EFN The most recent financial statements for Martin, Inc., are shown here:
|
Income Statement |
Balance Sheet |
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|
Sales |
$27,500 |
Assets |
$105,000 |
Debt |
$43,000 |
|
Costs |
19,450 |
Equity |
62,000 |
||
|
Taxable income |
$8,050 |
Total |
$105,000 |
Total |
$105,000 |
|
Taxes (34%) |
2,737 |
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|
Net income |
$5,313 |
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Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,050 was paid, and Martin wishes to maintain a constant payout ratio. Next year’s sales are projected to be $31,000. What is the external financing needed?