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4-2. Brindley Pharmaceuticals, Inc. projects next year's sales will be $20 million. Current sales are $15 million based on current assets of $5 million and

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4-2. Brindley Pharmaceuticals, Inc. projects next year's sales will be $20 million. Current sales are $15 million based on current assets of $5 million and fixed assets of $5 million. The firm's net profit margin is 5% after taxes. Brindley Pharmaceuticals forecasts that current assets will rise in direct proportion to the increase in sales, but fixed assets will increase by only $100,000. Currently, Brindley Pharmaceuticals has $1.5 million in accounts payable which vary directly with sales; $2 million in long-term debt due in 10 years; and common equity (including $4 million in retained earnings) totaling $6.5 million. Brindley Pharmaceuticals plans to pay $500,000 in common stock cash dividends next year. 4-2a. 4-2b. Given the firm's projections and dividend payments plan, what is its external financing needs? Based on your projections and assuming the $100,000 expansion in fixed assets will take place and $500,000 in cash dividends will be paid, what is the largest increase in sales the firm can support without having to resort to the use of external sources of financing

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