The most recent financial statements for Moose Tours, Inc. follow. Sales for 2009 are projected to grow by 16 percent

Country Comfort, Inc. had equity of $150,000 at the beginning of the year. At the end of the year, the company had total assets of $195,000. During the year, the company sold no new equity. Net income for the year was $63,000 and dividends were $44,640. What is the sustainable growth rate?    A.  10.32 percent B.  10.79 percent C.  11.78 percent D.  12.01 percent E.  12.24 percent Ending equity = $150,000 + ($63,000 - $44,640) = $168,360 Return on equity = $63,000/$168,360 = 0.3742 Retention ratio = ($63,000 - $44,640)/$63,000 = 0.2914 Sustainable growth rate = (0.3742 × 0.2914)/[1 - (0.3742 × 0.2914)] = 12.24 percent

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The most recent financial statements for Moose Tours, Inc. follow. Sales for 2009 are projected to grow by 16 percent. Interest expense will remain constant; the tax rate and dividend payout rate will also remain constant. Costs, other expenses, current assets, and accounts payable increase spontaneously will sales. If the firm is operating at full capacity and no new debt or equity is issued, how much external financing is needed to support the 16 percent growth rate in sales?          A.  $-10,246 B.  -$8,122 C.  -$6,708 D.  $2,407 E.  $3,309