Pickup Industries Has a Profit Margin of 15% and a Dividend

Multiple Choice

Pickup Industries has a profit margin of 15% and a dividend payout of 40%. Last year's sales were $600 million and total assets were $400 million. None of the liabilities vary directly with sales, but assets and costs do. If the sales growth rate for Pickup is 20%, how much external financing is needed?

A) $5.2 million
B) $13.1 million
C) $15.2 million
D) $21.3 million
E) $26.0 million