The internal rate of growth is based on the assumption

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1. The internal rate of growth is based on the assumption that:

the dividend amount is held constant.

no external funding of any type is obtained.

the return on equity is held constant.

the only additional outside capital obtained is long-term debt.

the debt-equity ratio is held constant.

2. Merrimack Company has current sales of $490,000, current liabilities of $80,000, and net working capital of $25,000. The projected sales for next year are $550,000. All net working capital accounts change directly with sales. What is the projected value of current assets for next year?

$127,271.43

$124,788.44

$120,296.75

$117,857.14

$114,536.20

Reference no: EM131965789

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