Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 40 percent dividend payout ratio. As with every other firm in its industry, next year's sales are projected to increase by exactly 20 percent.

What is the external financing needed?

$970 Income Statement Balance Sheet Current Sales $3,800 Current assets $4,200 liabilities Long-term Costs 2,200 Fixed assets 5,100 debt Taxable income $1,600 Equity Taxes (21%) 336 Total $9,300 Total Net income $1,264 3,500 4,830 $9,300 Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 40 percent dividend payout ratio. As with every other firm in its industry, next year's sales are projected to increase by exactly 20 percent. What is the external financing needed? Multiple Choice $700.00 $949.92 $755.92