Calculating External Financing Needed

Discipline: Finance

Type of Paper: Question-Answer

Academic Level: High school

Paper Format: APA

Pages: 1 Words: 277


Trying to find the external financing needed to support the 20% growth rate in sales of a company who is operating at full capacity and no debt or equity is issued with the following information:

Sales for 2007 are projected to grow by 20 percent.

Interest expense will remain constant; the tax rate and the dividend payout rate will remain constant.

Costs, other expenses, current assests, and accounts payable increase spontaneously with sales.