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Current dividend payout ratio from 50 percent

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A firm does not plan to change its current dividend payout ratio from 50 percent. Currently, the firm is operating at full capacity and has the following: sales of $19,700, net income of $3,571, fixed assets of $18,182, current liabilities of $2,490, current assets of $3,028, long-term debt of $7,650, and equity of $10,670. Long term debt and equity do not change as sales change, but assets and costs for the do. How much external financing will be needed if the firm believes sales will increase by 6 percent next year?

Reference no: EM132473560

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