1. Sales are expected to increase by 25 percent over the coming year -- they will increase to $25,000,000. 2. Operating costs are expected to increase to 62 percent of sales. 3. The interest rate on long-term debt will remain at 10 percent for 2008, but the interest rate or short-term debt, such as notes payable, will only be 6 percent. 4. The tax rate, currently 35 percent, is expected to increase to 38 percent in 2008. 5. The firm expects to have a dividend payout rate at 40 percent for the coming year, regardles whether new equity is or is not issued. 6. All current assets will increase proportionately with sales, except for cash, which will decrea $1,000.00 7. At the end of 2007, fixed assets (property plant and equipment) are being operated at only percent of capacity. 8. Fixed assets are lumpy. If the firm must increase its fixed assets, it will do so by adding an amount equal to $5,000. 9. Currently, fixed assets are being depreciated on a straight-line basis over 10 years. Any fixed assets will also b