$7$

$1$ point

You have been told that a company had sales of $$20,000$ last year. The company's costs were $$16,000$ last year. The company's tax rate is $30\%.$ The company paid a dividend of $$1,120$ last year. The company had assets of $$50,000.$ It had debt of $$20,000$ and total equity of $$30,000.$ Assets and costs are proportionate to sales $($therefore$,$ assets and costs increase as the same rate as sales$).$ The company's dividend payout ratio will not change next year. Next year's sales are projected to be $$30,000.$ If debt does not change next year, and no new shares are issued by the firm, what is the amount of the external financing needed $($EFN$)?$

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