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XYZ has the following financial information for 2012: Sales = $2M, Net Inc. = $0.4M, Div. = $0.1M C.A. = $0.4M, F.A. = $3.6M C.L.

XYZ has the following financial information for 2012:

Sales = $2M, Net Inc. = $0.4M, Div. = $0.1M

C.A. = $0.4M, F.A. = $3.6M

C.L. = $0.2M, LTD = $1M, C.S. = $2M, R.E. = $0.8M

What is the sustainable growth rate? If 2013 sales are projected to be $2.4M, what is the amount of external financing needed, assuming XYZ is operating at full capacity, and profit margin and payout ratio remain constant?

Please DO NOT solve in excel.

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