momneedinghelp
Nov 8, 2009, 01:17 PM
My company has sales of 500,000 dollars. A/R rate of 90,000 dollars. With a profit margin of 12% with a 40% dividend payout, how much external financing will I need? Please tell me how to solve this problem.
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momneedinghelp Nov 8, 2009, 01:17 PM My company has sales of 500,000 dollars. A/R rate of 90,000 dollars. With a profit margin of 12% with a 40% dividend payout, how much external financing will I need? Please tell me how to solve this problem. haider78605 Nov 8, 2009, 01:32 PM Account receivables = 90000 less profit retained 500000 x .12(1-.4) = -36000 Net financing required = 54000 Copyright ©2005-, Ask Me Help Desk
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