The most recent financial statements for Heng Co.are shown here: Assets and costs are proportional to sales.The company maintains a constant 45 percent dividend payout ratio and a constant debt-equity ratio.What is the maximum increase in sales that can be sustained next year assuming no new equity is issued?
A)$4,808.12
B)$5,211.17
C)$5,887.48
D)$5,894.60
E)$6,666.67

Question

The most recent financial statements for Heng Co.are shown here:  Assets and costs are proportional to sales.The company maintains a constant 45 percent dividend payout ratio and a constant debt-equity ratio.What is the maximum increase in sales that can be sustained next year assuming no new equity is issued?
A)$4,808.12 
B)$5,211.17 
C)$5,887.48 
D)$5,894.60 
E)$6,666.67

Quizplus · Accepted Answer

The Answer of The most recent financial statements for Heng Co.are shown here:  Assets and costs are proportional to sales.The company maintains a constant 45 percent dividend payout ratio and a constant debt-equity ratio.What is the maximum increase in sales that can be sustained next year assuming no new equity is issued?
A)$4,808.12 
B)$5,211.17 
C)$5,887.48 
D)$5,894.60 
E)$6,666.67

The Most Recent Financial Statements for Heng Co