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The Cookie Shoppe expects sales of $2,500,000 next year at a 5% pretax profit margin and an average tax rate of 18%. If it chooses

The Cookie Shoppe expects sales of $2,500,000 next year at a 5% pretax profit margin and an average tax rate of 18%. If it chooses to pay out 40% of its earnings as dividends, what is the projected increase in retained earnings? (Show calculation)

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