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AO Smith Corporation has total assets of $500,000. To support its growth in sales next year, it projects total assets will need to increase by

AO Smith Corporation has total assets of $500,000. To support its growth in sales next year, it projects total assets will need to increase by 8% and naturally occurring growth in financing resources (i.e., total liabilities and equity) will increase 4%. Assuming deficits can be financed with debt at 5%, by how much is interest expense expected to increase?

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