External Financing Needed: Sterling Resorts Has Total Assets Worth $13,442,975

question 75

Multiple Choice

External financing needed: Sterling Resorts has total assets worth $13,442,975. It is expecting to grow its revenue at a rate of 25 percent next year. For next year they expect a net income of $3,475,321 and will pay out 45 percent as dividends. What is the external financing needed by this firm to meet its growth expectations?

• A) $1,796,849.30
• B) $1,449,317.20
• C) No external funding is needed.
• D) None of the above