What are? sambonoza financing requirements?

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Sambonoza Enterprises projects its sales next year to be ?$3 million and expects to earn 6 percent of that amount after taxes. The firm is currently in the process of projecting its financing needs and has made the following assumptions? (projections):

1. Current assets will equal 28 percent of? sales, and fixed assets will remain at their current level of ?$1million.

2. Common equity is currently ?$0.70 million, and the firm pays out half of its? after-tax earnings in dividends.

3. The firm has? short-term payables and trade credit that normally equal 12 percent of? sales, and it has no? long-term debt outstanding

What are? Sambonoza's financing requirements? (i.e., total? assets) and discretionary financing needs ?(DFN?) for the coming? year?

Reference no: EM132386250

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