Galeshouse Gas Stations, Inc ., expects to increase from $1,500,000 to $1,700,000 nect year. Mr. Galeshouse beleives that net assets (Assets -Liablities) will represent 70 percent of sales. His firm has a 10 % return on sales and pays 40% of profits out as dividends.
A) What effect will growth have on funds?
B) If the dividend payout is only 15% , what effect will growth have on funds?
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