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A firm is currently operating at maximum capacity. The firm has a net income of $ 2 , 2 5 0 , total assets of
A firm is currently operating at maximum capacity. The firm has a net income of $ total
assets of $ longterm debt of $ accounts payable of $ dividends of $ and
total equity of $ All costs, assets, and current liabilities vary directly with sales. The tax rate and
the dividend payout ratio will remain constant. How much additional debt is required if no new equity is
raised and sales are projected to increase by percent?
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$A firm
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