Assume Costs, Accounts Payable, and Current Assets All Increase at the Same

question 290

Multiple Choice

Assume costs, accounts payable, and current assets all increase at the same rate as sales. Also assume 80% of net income is paid out in dividends and that the firm is currently operating at 90% of
Capacity. If sales grow at 25%, compute external financing needed.

• A) $0.00
• B) $4.50
• C) $22.50
• D) $29.50
• E) $52.00

---

Definitions:

Withdrawn

A psychological state or behavior characterized by a reluctance to engage with others or participate in social activities.

Cognitive Development

The progression of thinking, problem solving, and learning abilities throughout a person’s lifespan, often emphasizing stages and transitions.

Antisocial Behavior

Activities that harm or lack consideration for the well-being of others, often violating social norms and rules.

Imagining Feelings

The process of mentally simulating emotions that one may not currently be experiencing, often used in empathy and perspective-taking.