Question: Given the following information: current assets = $425; fixed assets = $400; long-term debt = $455; equity = $300; sales = $470; costs = $400;

Given the following information: current assets = $425; fixed assets = $400; long-term debt = $455; equity = $300; sales = $470; costs = $400; tax rate = 34%. Suppose that assets and costs maintain a constant ratio to sales. What is the total external financing needed if sales increase 25%? Assume the firm pays no dividends. Select one: a. $190.00 b. $183.75 c. $173.50 d. $66.25 e. $148.50

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