The income statement and balance sheet for Large Firm are given above. Large firm expects their sales to increase by 10% next year. Their costs and assets are proportional to sales, but debt and equity are not. Large firm wants to maintain a constant dividend payout ratio and they paid out 20,100 million in dividends this year.

What is the forecasted external financing needed for Large Firm?

LARGE FIRM Simplified Income Statement Current Year (millions) Revenue (Sales) 80,500 Cost 30,250 Net Income 50,250 LARGE FIRM Simplified Balance Sheet ASSETS LIABILITIES & EQUITY Current Year (millions) Current Year (millions) Assets 750,500 Debt 525,350 Equity 225,150 Total Assets 750,500 Total Liabilities & Equity 750,500