Tinbergen Cans expects sales next year to be $50,000,000. Inventory and accounts receivable (combined) will increase $8,000,000 to accommodate this sales level. The company has a profit margin of 6 percent. Its dividend payout is 30 percent of profit. How much external financing will the firm have to seek? Assume there is no increase in liabilities other than that which will occur with the external financing. Multiple Choice O O O No external financing will be needed. Less than $1,000,000 of external financing is needed. Between $1,000,000 and $5,000,000 of external financing is needed. More than $5,000,000 of external financing is needed.

Murpwchale No onienal finchang wit be neodet: Detween $5000000 and $5000000 ot antery trancing a nended. More than $5,000000 of external fihencing is needed