Calculate the required total external financing for growth


Here are the abbreviated financial statements for Planner's Peanuts: INCOME STATEMENT, 2015 Sales $ 9,000 Cost 7,100 Net income $ 1,900 BALANCE SHEET, YEAR-END 2014 2015 2014 2015 Assets $ 6,500 $ 7,000 Debt $ 853 $ 1,000 Equity 5,647 6,000 Total $ 6,500 $ 7,000 Total $ 6,500 $ 7,000 Assets are proportional to sales. If the dividend payout ratio is fixed at 50%, calculate the required total external financing for growth rates in 2016 of 25%, 30%, and 35%. (Do not round intermediate calculations. Round your answers to 2 decimal places.) External Financing Need 25% $ 30% $ 35% $.

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Financial Management: Calculate the required total external financing for growth
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