The 2000 financial statements for Growth Industries are presented below. Sales and costs in 2001 are projected

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The 2000 financial statements for Growth Industries are presented below. Sales and costs in 2001 are projected to be 20 percent higher than in 2000.

Both current assets and accounts payable are projected to rise in proportion to sales. The firm is currently operating at full capacity, so it plans to increase fixed assets in proportion to sales. What external financing will be required by the firm? Interest expense in 2001 will equal 10 percent of long-term debt outstanding at the start of the year. The firm will maintain a dividend payout ratio of 40.

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