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Wagner Industrial Motors, which is currently operating at full capacity, has sales of $2390, current assetsof $730, current liabilities of $420, net fixed assets of
Wagner Industrial Motors, which is currently operating at full capacity, has sales of $2390, current assetsof $730, current liabilities of $420, net fixed assets of $1580, and a 5 percent profit margin. The firm hasno long-term debt and does not plan on acquiring any. The firm does not pay any dividends. Sales are expectedto increase by 10 percent next year. If all assets, short-term liabilities, and costs vary directly with sales, howmuch additional equity financing is required for next year?
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