(Answered) What is the formula to calculate the required external

Economics

What is the formula to calculate the required external financing over the next year?

Growth at 30% a year for at least the next 4 years.

The operating at 75% capacity.

Interest expense will equal 10% of long-term debt outstanding at the start of the year.

Dividend payout ratio of 0.40.

Total current assets $50,000

Total Liabilities $15,000

Sales $ 390K

Cost 245K

EBIT 145K

Interest Expense 29K

Taxable income 116,000

Taxes 35% 40,600

Net Income 75,400

Dividends 30,160

Addition to retained earnings 45,240

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