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to accommodate this sales level. The company has a steady profit margin of 1 0 percent, with a 2 5 percent dividend payout. - 4
to accommodate this sales level. The company has a steady profit margin of percent, with a percent dividend payout. marks.How much external funding will the firm have to seek? Assume there is no increase in liabilities other than thatawhich will occur with the external financing. marks Vincent Black Lightning requires $ in financing over the next three years. The firm can borrow the funds for three years at percent interest per year. Vincent decides to do forecasting and predicts that if he utilizes shortterm financing instead, he will pay percent interest in the first year, percent in the second year, and percent interest in the third year. marksa Determine the total threeyear interest cost under each plan. marksb Which plan is less costly
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