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The 2015 financial statements for Growth Industries are presented below: Sales and costs in 2016 are projected to be 30% higher than in 2015. Both
The 2015 financial statements for Growth Industries are presented below: Sales and costs in 2016 are projected to be 30% higher than in 2015. Both current assets and accounts payable are projected to rise in proportion to sales. The fixed assets of Growth Industries are operating at only 75% of capacity. Interest expense in 2016 will equal 10% of long-term debt outstanding at the start of the year. The firm will maintain a dividend payout ratio of .40. What is the required external financing over the next year
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