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Rondolo, Inc

Question 355

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Rondolo, Inc. is currently operating at 84% of capacity. All costs and net working capital vary directly with sales. The tax rate, the profit margin, 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 12%?($ in millions) A) -$820.40 B) -$229.84 C) -$4.20 D) $349.20
Rondolo, Inc. is currently operating at 84% of capacity. All costs and net working capital vary directly with sales. The tax rate, the profit margin, and the dividend payout ratio will remain constant. How Much additional debt is required if no new equity is raised and sales are projected to increase by 12%?($ in millions) A) -$820.40 B) -$229.84 C) -$4.20 D) $349.20 Rondolo, Inc. is currently operating at 84% of capacity. All costs and net working capital vary directly with sales. The tax rate, the profit margin, and the dividend payout ratio will remain constant. How
Much additional debt is required if no new equity is raised and sales are projected to increase by
12%?($ in millions)


A) -$820.40
B) -$229.84
C) -$4.20
D) $349.20

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