The Dalmatian Corporation expects the following summarized financial results this year ($000)
Use the EFR relation to estimate Dalmatian’s external funding requirements under the following conditions.
a. Sales growth of 15%.
b. Sales growth of 20% and a reduction in the payout ratio to 25%.
c. Sales growth of 25%, elimination of dividends, and a 4% improvement in ROS to 12%.
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