Assume that all costs and assets of Delalo, Inc. increase directly with sales. Also assume that the tax rate and the dividend payout ratio and profit margin are constant. The firm is currently operating at full capacity. What is the external financing needed if sales increase by 8 percent?
A) $281.81
B) $360.12
C) $402.61
D) $509.01
E) $545.20
Correct Answer:
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Q120: Calculate the external financing needed given the
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