9. Hildebrand Hydronics Corporation wishes to achieve a 35 percent increase in sales next year. Sales last

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9. Hildebrand Hydronics Corporation wishes to achieve a 35 percent increase in sales next year. Sales last year were $30 million, and the company has equity capital of $12 million. It intends to raise $.5 million in new equity by sale of stock to officers. No dividend is planned. Tentatively, the company has set the following targets: assets-to-sales ratio, .67; net profit margin, .08; and debt-toequity ratio, .60. The company has determined that these ratios are not sufficient to produce a growth in sales of 35 percent.

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