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The following information is given for Company: Asset = 80,00,000, Sales = 1,00,00,000, Spontaneous Liabilities = 20,00,000, Profit Margin = 5% Dividend payout = 0.60,

The following information is given for Company:

Asset = 80,00,000,

Sales = 1,00,00,000,

Spontaneous Liabilities = 20,00,000,

Profit Margin = 5%

Dividend payout = 0.60,

Sales to grow @ 20%.

1. Estimate External Fund Requirement of the firm

2. What could be the source of funding in order of preference according to Pecking order theory. Justify the reason for the same.

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