How much additional equity financing is required

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Reference no: EM13976525

Rector Corporation, which is currently operating at full capacity, has sales of $29,000, current assets of $1,600, current liabilities of $1,200, net fixed assets of $27,500, and a 5 percent profit margin. The firm has no long-term debt and does not plan on acquiring any. The firm does not pay any dividends. Sales are expected to increase by 3.5 percent next year. If all assets, short-term liabilities, and costs vary directly with sales, how much additional equity financing is required for next year?

-$967.30

-$524.25

-$259.75

$967.30

$1,515.25

Reference no: EM13976525

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