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The most recent financial statements for Scott, Inc., appear below. Sales for 2020 are projected to grow by 30 percent. Interest expense will remain constant;

The most recent financial statements for Scott, Inc., appear below. Sales for 2020 are projected to grow by 30 percent. Interest expense will remain constant; the tax rate and the dividend payout rate also will remain constant. Costs, other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales.

SCOTT, INC. 2019 Income Statement
Sales $ 765,000
Costs 621,000
Other expenses 30,000
Earnings before interest and taxes $ 114,000
Interest expense 14,800
Taxable income $ 99,200
Taxes (22%) 21,824
Net income $ 77,376
Dividends $ 24,840
Addition to retained earnings 52,536

SCOTT, INC. Balance Sheet as of December 31, 2019
Assets Liabilities and Owners Equity
Current assets Current liabilities
Cash $ 25,440 Accounts payable $ 62,200
Accounts receivable 34,880 Notes payable 18,200
Inventory 71,600 Total $ 80,400
Total $ 131,920 Long-term debt $ 113,000
Owners equity
Fixed assets Common stock and paid-in surplus $ 112,000
Net plant and equipment $ 222,000 Retained earnings 48,520
Total $ 160,520
Total assets $ 353,920 Total liabilities and owners equity $ 353,920

What is the EFN if the firm wishes to keep its debt-equity ratio constant? (Do not round intermediate calculations and round your answer to the nearest whole dollar amount, e.g., 32.)

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