Business, 05.05.2021 01:00, lucylooe11

Sales and costs are projected to grow at 20% a year for at least the next 4 years. Both current assets and accounts payable are projected to rise in proportion to sales. The firm is currently operating at 75% capacity, so it plans to increase fixed assets in proportion to sales. Interest expense will equal 10% of long-term debt outstanding at the start of the year. The firm will maintain a dividend payout ratio of 0.40. Required:
What is the required external financing over the next year?

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Sales and costs are projected to grow at 20% a year for at least the next 4 years. Both current asse...