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QUESTION 3 AO Smith Corporation has total assets of $1,250,000. To support its growth in sales next year, it projects total assets will need to

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QUESTION 3 AO Smith Corporation has total assets of $1,250,000. To support its growth in sales next year, it projects total assets will need to increase by 7% and naturally occurring growth in financing resources (i.e., total liabilities and equity) will increase by 4%. Assuming deficits can be financed with debt at 7%, by how much is interest expense expected to increase due to the increased amount of borrowing needed

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