Multiple Choice
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
Correct Answer:

Verified
Correct Answer:
Verified
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