Gardial greenlights a manufacturer of energy efficient, Ask an Expert

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Gardial GreenLights, a manufacturer of energy efficient lighting solutions, has had such success with its new products that it is planning to substantially expand its manufacturing capacity with a $15 million investment in new machinery.

Gardial plans to maintain its current 40% debt-to-total-assets ratio for its capital structure and to maintain its dividend policy in which at the end of each year it distributes 40% of the year's net income.

This year's net income was $8 million. How much external equity must Gardial seek now to expand as planned?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91940775

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