Assume that Fake Stone, Inc.is operating at full capacity.Also assume that all costs, net working capital, and fixed assets vary directly with sales.The debt-equity ratio and the dividend payout ratio are constant.What is the pro forma net fixed asset value for next year if sales are projected to increase by 7.5 percent?
A)$19,800
B)$21,070
C)$23,600
D)$24,240
E)$26,810

Question

Assume that Fake Stone, Inc.is operating at full capacity.Also assume that all costs, net working capital, and fixed assets vary directly with sales.The debt-equity ratio and the dividend payout ratio are constant.What is the pro forma net fixed asset value for next year if sales are projected to increase by 7.5 percent?
A)$19,800 
B)$21,070 
C)$23,600 
D)$24,240 
E)$26,810

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The Answer of  
Assume that Fake Stone, Inc.is operating at full capacity.Also assume that all costs, net working capital, and fixed assets vary directly with sales.The debt-equity ratio and the dividend payout ratio are constant.What is the pro forma net fixed asset value for next year if sales are projected to increase by 7.5 percent?
A)$19,800 
B)$21,070 
C)$23,600 
D)$24,240 
E)$26,810

Assume That Fake Stone, Inc