Estimate the sustainable sales growth rate for the munich co

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Following are two years of income statements and balance sheets for the Munich Exports Corporation.

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A. Munich has a target dividend payout of 40 percent of net income. Based on the 2010 financial statements relationships, estimate the sustainable sales growth rate for the Munich Corporation for 2011.

B. Show how your answer in Part A would change if Munich decided not to pay any dividends in 2011.

C. Assume the Munich Corporation wants to grow its sales by 40 percent in 2011 over its 2010 level. Estimate the additional funds needed that will be necessary to support this rapid increase in sales.

D. Sales are forecasted to increase an additional 20 percent in 2012 over 2011. Estimate the two-year AFN that the Munich Corporation will need to finance its 2011 and 2012 sales growthplans.  

Reference no: EM131123569

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