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The most recent financial statements for Alexander Co. are shown here: Income Statement Balance Sheet Sales $ 39,200 Current assets $ 24,800 Long-term debt $ 55,000 Costs 29,600 Fixed assets 81,000 Equity 50,800 Taxable income $ 9,600 Total $ 105,800 Total $ 105,800 Taxes (34%) 3,264 Net income $ 6,336 Assets and costs are proportional to sales. The company maintains a constant 40 percent dividend payout ratio and a constant debt–equity ratio. What is the maximum dollar increase in sales that can be sustained assuming no new equity is issued? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Maximum increase in sales $

Financial Management, Finance

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