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Business, 01.07.2020 22:01 SithLeo

Problem 14-06 External Equity Financing Gardial GreenLights, a manufacturer of energy-efficient lighting solutions, has had such success with its new products that it is planning to substantially expand its manufacturing capacity with a $20 million investment in new machinery. Gardial plans to maintain its current 60% debt-to-total-assets ratio for its capital structure and to maintain its dividend policy in which at the end of each year it distributes 30% of the year's net income. This year's net income was $8 million. How much external equity must Gardial seek now to expand as planned

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Problem 14-06 External Equity Financing Gardial GreenLights, a manufacturer of energy-efficient ligh...
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