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3. B& B recently reported sales of $100 million, and net income equal to $5 million. The company has $70 million in total assets. Over

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3. B& B recently reported sales of $100 million, and net income equal to $5 million. The company has $70 million in total assets. Over the next year, the company is forecasting a 20 percent increase in sales. since the company is at full capacity, its assets must increase in proportion to sales. The company also estimates spontaneous liabilities will increase by $2 million to support sales increase. Profit margin will remain at its current level. The company's dividend payout,ratio is 40 percent. Based on the AFN formula, how much additional capital must the company raise? 8.4m

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