In 2002, sales were $60mn. In 2003, management believes sales will increase by 20% to a total of $72mn. The profit margin is expected to be 5% and the dividend payout ratio is targeted at 40%. No excess capacity exists.
1. What is the additional financing requirement (in $ mn) for 2003 using AFN formula?
2. How much can sales grow without additional funds?
Attachment:- Homework.rar