Revenues	$4,200	Current assets	$4,500	Current liabilities	$970
Costs	2,800	Fixed assets	5,300	Long-term debt	3,500
Taxable income	$1,400			Equity	5,330
Taxes (23%)	322	Total	$9,800	Total	$9,800
Net income	$1,078

Assets, costs, and current liabilities vary directly with revenues. Long-term debt and equity do not. The firm maintains a constant 40 percent dividend payout rate. Revenues for the next year are projected to increase by 25 percent.

What is the external financing needed for the next year?

Multiple Choice

• $1,399.00

• $1,349.00

• $875.00

• $1,641.50

• $1,449.00