How much external financing will the firm have to seek


Antivirus, Inc., expects its sales next year to be $2,000,000. Inventory and accounts receivable will increase by $430,000 to accommodate this sales level. The company has a steady profit margin of 12 percent with a 25 percent dividend payout. How much external financing will the firm have to seek? Assume there is no increase in liabilities other than that which will occur with the external financing.

Solution Preview :

Prepared by a verified Expert
Finance Basics: How much external financing will the firm have to seek
Reference No:- TGS0610291

Now Priced at $10 (50% Discount)

Recommended (99%)

Rated (4.3/5)