Calculating External Financing Needed
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.