Assume costs, accounts payable, and current assets all increase at the same rate as sales. Also assume 80% of net income is paid out in dividends and that the ﬁrm is currently operating at 90% of
Capacity. If sales grow at 25%, compute external ﬁnancing needed.
A) $0.00
B) $4.50
C) $22.50
D) $29.50
E) $52.00

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The Answer of Assume costs, accounts payable, and current assets all increase at the same rate as sales. Also assume 80% of net income is paid out in dividends and that the ﬁrm is currently operating at 90% of
Capacity. If sales grow at 25%, compute external ﬁnancing needed.
A) $0.00
B) $4.50
C) $22.50
D) $29.50
E) $52.00

Assume Costs, Accounts Payable, and Current Assets All Increase at the Same