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A company has revenues of 100 million, COGS are 60% of sales, operating expensesare 10% of sales (including depreciation). Interest expense is 3 million. Tax
A company has revenues of 100 million, COGS are 60% of sales, operating expensesare 10% of sales (including depreciation). Interest expense is 3 million. Tax rate is 40%,dividend payout is 1/3. Assets are 100 million, Debt is 30 million, accounts payable are 6million. Equity is 64 million. What is external financing need if the company grows at12%. Assume Interest Expense stays constant. Assume any surplus goes to assets andany deficit goes to debt.
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