Problem on external funds


Question:

If a firm uses external financing as a plug item, has a new capital budget of $2 million, a net income of $3 million, and a plowback ratio of 40%, how much should be raised in external funds?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Problem on external funds
Reference No:- TGS02051361

Now Priced at $20 (50% Discount)

Recommended (99%)

Rated (4.3/5)