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

Multiple Choice

Assume costs, assets, and accounts payable all increase at the same rate as sales. Also assume 80% of net income is paid out in dividends. If sales grow at 25%, compute external financing
Needed.

A) $0.00
B) $4.50
C) $22.50
D) $29.50
E) $52.00