External Financing Needed: Nederland Finance Company Has Total Assets Worth

question 59

Multiple Choice

External financing needed: Nederland Finance Company has total assets worth $9,751,223. It is expecting to grow its revenue at a rate of 20 percent next year and will have a net income of $2,213,564 next year. The firm pays out 65 percent of its net income as dividends. What is the external financing needed by this firm to meet its growth expectations?

• A) $1,175,497.20
• B) $511,428.00
• C) No external funding is needed.
• D) None of the above

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