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How Much External Financing Is Needed for a 20% Increase

Question 208

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How much external financing is needed for a 20% increase in sales if the Corporation is currently operating at full capacity? Assume assets and costs vary directly with sales but no current liabilities increase with sales and that the dividend payout ratio remains fixed. ($ in millions) A) $0 B) $23.2 million C) $27.6 million D) $37.4 million E) $53.6 million How much external financing is needed for a 20% increase in sales if the Corporation is currently operating at full capacity? Assume assets and costs vary directly with sales but no current liabilities increase with sales and that the dividend payout ratio remains fixed. ($ in millions) A) $0 B) $23.2 million C) $27.6 million D) $37.4 million E) $53.6 million How much external financing is needed for a 20% increase in sales if the Corporation is currently operating at full capacity? Assume assets and costs vary directly with sales but no current liabilities increase with sales and that the dividend payout ratio remains fixed. ($ in millions)


A) $0
B) $23.2 million
C) $27.6 million
D) $37.4 million
E) $53.6 million

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