Intro

Model Corp.'s most recent balance sheet and income statement are given below (all numbers in $ million):

Assets			Liabilities and Equity
Cash	33		Accounts payable	99
Accounts receivable	66		Current liabilities	99
Inventory	99		Long-term debt	198
Current assets	198		Total liabilities	297
Net PPE	132		Equity	33
Total assets	330		Total liab. & equity	330

Income statement
Sales	100
Operating Costs	60
Depreciation	20
EBIT	20
Interest	9.9
Taxable income	10.1
Taxes	3.434
Net income	6.666

Sales, operating costs, and depreciation are expected to grow by 40% next year. All asset accounts and the accounts payable will be the same percentage of sales as they have been historically. The tax rate and interest-bearing debt will stay constant. The company pays out 30% of net income as dividends. No stock issuances or repurchases are expected.

Using the percentage of sales method, what will be the net income next year (in $ million)?

Using the percentage of sales method, what will be the book value of equity next year (in $ million)?

What is the [external financing required] ([EFR]) for next year (in $ million)?