Pickup Industries has a profit margin of 15% and a dividend payout of 40%. Last year’s sales were $600 million and total assets were $400 million. None of the liabilities vary directly with sales, but assets and costs do. If the sales growth rate for Pickup is 20%, how much external financing is needed? 

Select one: 

a. $5.2 million

b. $15.2 million

c. $26.0 million

d. $13.1 million

e. $21.3 million

Answer rating: 100% (QA)

External funding needed 1520 million Stepbystep explana... View the full answer