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Antivirus Inc. expects its sales next year to be $2,900,000. Inventory and accounts receivable will increase by $520,000 to accommodate this sales level. The company
Antivirus Inc. expects its sales next year to be $2,900,000. Inventory and accounts receivable will increase by $520,000 to accommodate this sales level. The company has a steady profit margin of 10 percent with a 25 percent dividend payout.
How much external financing will the firm have to seek? Assume there is no increase in liabilities other than that which will occur with the external financing.
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