Roscolnc. Income Statement For the year ended December 20XX Amount of Dividends paid Eamings Retained 252 Aditional Information: The copnmapny is planning to grow by 20% next year. Assuming that interest expense remains unchanged and the tax rate is lowered to 28%, use the percent of sales method to answer the questions below. All assets and Accounts payable will grow proportionately, but assume debt and common shares are initially unchanged. Required: 1) How much extemal financing will be needed in the next year to finance the growth. 2) If the fixed assets are currently operating at 90% capacity, how much will the EFN from part 1 change by? 3) Calculate the intemal growth and sustainable growth rates. Explain what they mean. Roscolnc. Income Statement For the year ended December 20XX Amount of Dividends paid Eamings Retained 252 Aditional Information: The copnmapny is planning to grow by 20% next year. Assuming that interest expense remains unchanged and the tax rate is lowered to 28%, use the percent of sales method to answer the questions below. All assets and Accounts payable will grow proportionately, but assume debt and common shares are initially unchanged. Required: 1) How much extemal financing will be needed in the next year to finance the growth. 2) If the fixed assets are currently operating at 90% capacity, how much will the EFN from part 1 change by? 3) Calculate the intemal growth and sustainable growth rates. Explain what they mean