solution

This year, Green Lumber has total sales of $387,200 on
total assets of $429,600, current liabilities-to-sales ratio of
11.62 percent, dividend payout ratio of 41.60 percent, and net
profit margin of 14.90 percent. Assume that all costs,
assets, and current liabilities change spontaneously with
sales. The tax rate and dividend payout ratios remain
constant. If the firm’s managers project a firm growth rate of 12
percent for next year, that is, sales will increase by $46,464 to
$433,664, what will be the amount of external financing
needed
(EFN) to support this level of growth? (Hint:
Use the EFN formula. Choose the closest
answer)