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The Lumber Mill has total assets of $591,600, current liabilities of $49,700, dividends paid of $12,000, net sales of $68,400, and net income of $55,400.
The Lumber Mill has total assets of $591,600, current liabilities of $49,700, dividends paid of $12,000, net sales of $68,400, and net income of $55,400. Assume that all costs, assets, and current liabilities change spontaneously with sales. The tax rate and dividend payout ratios remain constant. If the firm's managers project a firm growth rate of 6 percent for next year, what will be the amount of external financing needed to support this level of growth? Assume the firm is currently operating at full capacity. Multiple Choice $3,200 O -$13,490 -$17,520 $15,640 $16,380
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