KBC, Inc. has the financial profile illustrated below.

Next year, Margins (%) will hold steady, and Assets grow proportionally with Sales. Debt will remain unchanged. ABC intends to maintain the same constant dividend payout ratio (dividend as a percent of Net Income) as this year. Next years sales are projected to increase by 11%. How much additional external capital will be required to support the growth in assets, given that KBC, Inc. retains some of its earnings and pays the balance in dividends?

Answer rating: 100% (QA)

To calculate the additional external capital required to support the growth in assets for KBC Inc wh... View the full answer