Consider the following simplified financial statements for the Wesney Corporation (assuming no income taxes) The company has predicted a sales increase of 20 percent. Assume the company pays out half of its net income in the form of a cash dividend. Costs and assets vary with sales, but debt and equity do not. What is the external financing needed? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations; round your answer to the nearest whole number, e.g., 32.) External financing needed
Consider the following simplified financial statements for the Wesney Corporation (assuming no income taxes)
The company has predicted a sales increase of 20 percent. Assume the company pays out half of its net income in the form of a cash dividend. Costs and assets vary with sales, but debt and equity do not.
What is the external financing needed? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations; round your answer to the nearest whole number, e.g., 32.) External financing needed
External financing refers to the funds that a company raises from sources outside the company, such as banks, investors, or other financial institutions. External financing can take various forms, including equity financing, debt financing, or a combination of both.
When a company needs more funds than it can generate internally from operations, it may seek external financing to finance its growth or to cover its operating expenses. External financing can also be used to finance investments in new projects, research and development, or to support a company's expansion plans.
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