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