Kizspy | Question: 50
(Choose 1 answer)
The Beta Co., which is currently operating at full capacity, has sales of $3,000, current assets of $800, current liabilities of $400, net fixed assets of $1,900, and a 6 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 9 percent next year. If all assets, liabilities, and costs vary directly with sales, how much additional equity financing is required for next year?
A. $10.80
Β. $23.00
C. $103.50
D. $196.20
