Rondolo, Inc. is currently operating at maximum capacity. All costs, assets, and current liabilities vary directly with sales. The tax rate and the dividend payout ratio will remain constant. How much
Additional debt is required if no new equity is raised and sales are projected to increase by 4% ($ in
Millions)?
A) -$562.50
B) -$122.08
C) $318.01
D) $416.00

Question

Rondolo, Inc. is currently operating at maximum capacity. All costs, assets, and current liabilities vary directly with sales. The tax rate and the dividend payout ratio will remain constant. How much
Additional debt is required if no new equity is raised and sales are projected to increase by 4% ($ in
Millions)?
A) -$562.50 
B) -$122.08 
C) $318.01 
D) $416.00

Quizplus · Accepted Answer

The Answer of 
 Rondolo, Inc. is currently operating at maximum capacity. All costs, assets, and current liabilities vary directly with sales. The tax rate and the dividend payout ratio will remain constant. How much
Additional debt is required if no new equity is raised and sales are projected to increase by 4% ($ in
Millions)?
A) -$562.50 
B) -$122.08 
C) $318.01 
D) $416.00