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Last year, Grow Now reported sales of $5 million, net income of $200,000, total assets of $3 million, and total equity of $3 million. If
Last year, Grow Now reported sales of $5 million, net income of $200,000, total assets of $3 million, and total equity of $3 million. If the firm wants to increase sales next year by 10.88 percent and has a dividend payout ratio of 25 percent of earnings, Grow Now's contribution to retained earnings next year will be __________ according to the sustainable growth model.
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