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Wagner Industrial Motors, which is currently operating at full capacity, has sales of $2,440, current assets of $780, current liabilities of $470, net fixed assets
Wagner Industrial Motors, which is currently operating at full capacity, has sales of $2,440, current assets of $780, current liabilities of $470, net fixed assets of $1,630, and a 5 percent profit margin. The firm has no long-term debt and does not plan on acquiring any. The firm does not pay any dividends. Sales are expected to increase by 10 percent next year. If all assets, short-term liabilities, and costs vary directly with sales, how much additional equity financing is required for next year?
$12.20
$59.80
$181.80
$256.20
$244.00
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