Long-term debt outstanding at the start of the year

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What is the formula to calculate the required external financing over the next year?

Growth at 30% a year for at least the next 4 years.

The operating at 75% capacity.

Interest expense will equal 10% of long-term debt outstanding at the start of the year.

Dividend payout ratio of 0.40.

Total current assets $50,000

Total Liabilities $15,000

Sales $ 390K

Cost    245K

EBIT    145K

Interest Expense 29K

Taxable income 116,000

Taxes 35%         40,600

Net Income      75,400

Dividends         30,160

Addition to retained earnings 45,240

Reference no: EM132097253

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