Steel Mill is currently operating at $84$ percent of capacity. Annual sales

are $$28,400$ and net income is $$2,250.$ The firm has current liabilities of

$$2,700,$ long$-$term debt of $$9,800,$ net fixed assets of $$16,900,$ net working

capital of $$5,000,$ and owners' equity of $$12,100.$ All costs and net working

capital vary directly with sales. The tax rate and profit margin will remain

constant. The dividend payout ratio is constant at $40$ percent. How much

additional debt is required if no new equity is raised and sales are projected to

increase by $14\mathrm{.}8$ percent?

$$358$

$-$$$912$

$-$$$642$

$$264$

$-$$$810$