Question: Given the following information: current assets = $425; fixed assets $500; long-term debt = $455; equity = $300; sales = $470; costs = $400; tax

Given the following information: current assets = $425; fixed assets $500; 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: O a. $143.75 O b. $66.25 O c. $190.00 O d. $173.50 O e. $183.75

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