Problem

Calculating EFN In Problem 21, suppose the firm wishes to keep its debt–equity rat...

Calculating EFN In Problem 21, suppose the firm wishes to keep its debt–equity ratio constant. What is EFN now?

Reference:

Calculating EFN The most recent financial statements for Moose Tours, Inc., appear below. Sales for 2012 are projected to grow by 20 percent. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. Costs, other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales. If the firm is operating at full capacity and no new debt or equity is issued, what external financing is needed to support the 20 percent growth rate in sales?

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