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A company projects that next year's sales will grow 9% and ROA (net income divided by the previous year's total assets) is constant at
A company projects that next year's sales will grow 9% and ROA (net income divided by the previous year's total assets) is constant at 9%, but debt and equity do not change with sales automatically (except for the new retained earnings). The current year's total assets is $6000. The company's plowback ratio is always 20%. Assuming that total assets must grow at the same speed as sales, what is next year's external financing need (round to the closest whole number and the answer could be negative)? Your Answer:
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