Major Manuscripts, Inc.is currently operating at 82 percent of capacity.All costs and net working capital vary directly with sales.The tax rate, the profit margin, and the dividend payout ratio will remain constant.How much additional debt is required if no new equity is raised and sales are projected to increase by 15 percent?
A)-$1,810
B)-$1,014
C)-$642
D)$244
E)$358

Question

Major Manuscripts, Inc.is currently operating at 82 percent of capacity.All costs and net working capital vary directly with sales.The tax rate, the profit margin, and the dividend payout ratio will remain constant.How much additional debt is required if no new equity is raised and sales are projected to increase by 15 percent?
A)-$1,810 
B)-$1,014 
C)-$642 
D)$244 
E)$358

Quizplus · Accepted Answer

The Answer of  
Major Manuscripts, Inc.is currently operating at 82 percent of capacity.All costs and net working capital vary directly with sales.The tax rate, the profit margin, and the dividend payout ratio will remain constant.How much additional debt is required if no new equity is raised and sales are projected to increase by 15 percent?
A)-$1,810 
B)-$1,014 
C)-$642 
D)$244 
E)$358