Assume that net working capital and all of the costs of Fake Stone, Inc.increase directly with sales.Also assume that the tax rate and the dividend payout ratio are constant.The firm is currently operating at full capacity.What is the external financing need if sales increase by 4 percent?
A)-$1,214.48
B)-$804.15
C)-$397.19
D)$201.16
E)$525.38

Question

Assume that net working capital and all of the costs of Fake Stone, Inc.increase directly with sales.Also assume that the tax rate and the dividend payout ratio are constant.The firm is currently operating at full capacity.What is the external financing need if sales increase by 4 percent?
A)-$1,214.48 
B)-$804.15 
C)-$397.19 
D)$201.16 
E)$525.38

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The Answer of  
Assume that net working capital and all of the costs of Fake Stone, Inc.increase directly with sales.Also assume that the tax rate and the dividend payout ratio are constant.The firm is currently operating at full capacity.What is the external financing need if sales increase by 4 percent?
A)-$1,214.48 
B)-$804.15 
C)-$397.19 
D)$201.16 
E)$525.38

Assume That Net Working Capital and All of the Costs