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Assume That Delalo, Inc

Question 54

Multiple Choice

Assume that Delalo, 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 projected increase in net fixed assets if sales are projected to increase by 11 percent? A) $269.50 B) $506.00 C) $1,102.20 D) $1,371.70 E) $2,719.50 Assume that Delalo, 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 projected increase in net fixed assets if sales are projected to increase by 11 percent? A) $269.50 B) $506.00 C) $1,102.20 D) $1,371.70 E) $2,719.50 Assume that Delalo, 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 projected increase in net fixed assets if sales are projected to increase by 11 percent? A) $269.50 B) $506.00 C) $1,102.20 D) $1,371.70 E) $2,719.50 Assume that Delalo, 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 projected increase in net fixed assets if sales are projected to increase by 11 percent?


A) $269.50
B) $506.00
C) $1,102.20
D) $1,371.70
E) $2,719.50

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