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In addition, fairness part of Cartwright Lumber Enterprise just isn't rising with the growth in its total assets; this shows that Cartwright Lumber Organization is applying much more financial debt to finance investment in property as an alternative to equity.
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On top of that, an increase in fascination cost as proportionate to income income means that Cartwright Lumber Firm will not be employing its extra borrowing in era of sales revenues. Furthermore, the tax payments are very same around the calendar year 2001 to 2002 and reduce by 4% go right here over the yr 2003; For that reason, it leaves a little added residual value for common inventory holders.
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