External financing needed: Sterling Resorts has total assets worth $13,442,975. It is expecting to grow its revenue at a rate of 25 per cent next year. For next year they expect a profit of $3,475,321 and will pay out 45 per cent as dividends. What is the external financing needed by this company to meet its growth expectations?
A) $1,796,849.30
B) $1,449,317.20
C) No external funding is needed.
D) None of the above
Correct Answer:
Verified
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