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A firm has sales of $78.000, expenses of $62.400, total assets of $390,000, and total debt of $156,000, Assets and costs are proportional to sales. Debt and equity are not. No dividends or taxes are paid. Next year's sales are projected to be $85,800. What is the amount of external financing needed? Multiple Choice $39,000 C $274,560 $21,840 O $17161 $171,600

A firm has sales of $78.000, expenses of $62.400, total assets of $390,000, and total debt of $156,000, Assets and costs are proportional to sales. Debt and equity are not. No dividends or taxes are paid. Next year's sales are projected to be $85,800. What is the amount of external financing needed? Multiple Choice $39,000 C $274,560 $21,840 O $17161 $171,600

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter17: Dynamic Capital Structures And Corporate Valuation
Section: Chapter Questions
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A firm has sales of $78.000, expenses of $62.400, total assets of $390,000, and total debt of $156,000, Assets and costs are proportional to sales. Debt and equity are not. No dividends or taxes are paid. Next year's sales are projected to be $85,800. What is the amount of external financing needed? Multiple Choice $39,000 C $274,560 $21,840 O $17161 $171,600
Transcribed Image Text:A firm has sales of $78.000, expenses of $62.400, total assets of $390,000, and total debt of $156,000, Assets and costs are proportional to sales. Debt and equity are not. No dividends or taxes are paid. Next year's sales are projected to be $85,800. What is the amount of external financing needed? Multiple Choice $39,000 C $274,560 $21,840 O $17161 $171,600
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