What is the dividend they predict to pay out

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Reference no: EM132067247

Question: 1. Consider the following simplified financial statements for the Equity Inc.:

Balance Sheet:

Assets $9,500 Debt $4,500

Equity $5,000

Total $9,500 Total $9,500

Income Statement:

Sales $20,000

Costs $14,400

Net Income $5,600

Equity Inc. is expecting a sales increase of 8 percent and it anticipates that every item on the balance sheet will increase by 8 percent as well. What is the dividend they predict to pay out? Assume no income taxes.

Reference no: EM132067247

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