They know that assets and costs will grow proportionate to


TLC Company has collected the following data for 2017:

Sales                 475,000

Costs                 298,000

Assets                600,000

Debt                  200,000

Equity                400,000

Dividends           69,030

Tax rate                  35%

The board of XYZ would like sales to grow to $560,500 in 2018. They plan to keep the dividend payout ratio the same. They know that assets and costs will grow proportionate to sales, but debt and equity will not. What will be the external financing needed?

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Financial Management: They know that assets and costs will grow proportionate to
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