2022 balance sheet are given below: Income statement ($ million) Sales 700 Costs 560 Net income...

 

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2022 balance sheet are given below: Income statement ($ million) Sales 700 Costs 560 Net income 140 Balance sheet ($ million) 372 868 Current assets 248 Debt Fixed assets 992 Equity Total assets 1,240 Total 1,240 Sales, costs, and total assets are expected to grow by 31% in 2023. The company is expected to pay out 30% of net income as dividends and to keep its debt-equity ratio constant in 2023. Part 1 Attempt 1/3 for 10 pts. What is the external (equity) financing needed (EFN) for year 2023 (in $ million)? 2022 balance sheet are given below: Income statement ($ million) Sales 700 Costs 560 Net income 140 Balance sheet ($ million) 372 868 Current assets 248 Debt Fixed assets 992 Equity Total assets 1,240 Total 1,240 Sales, costs, and total assets are expected to grow by 31% in 2023. The company is expected to pay out 30% of net income as dividends and to keep its debt-equity ratio constant in 2023. Part 1 Attempt 1/3 for 10 pts. What is the external (equity) financing needed (EFN) for year 2023 (in $ million)?

Answer rating: 100% (QA)

To calculate the external equity financing needed EFN for 2023 we need to consider the growth in sal... View the full answer