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Your firm is considering purchasing a new machine. With the new machine, sales are expected to increase from $12 million to $14 million. The firm

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Your firm is considering purchasing a new machine. With the new machine, sales are expected to increase from $12 million to $14 million. The firm believes assets and liabilities vary directly with sales. The firm's profit margin is 12% and the dividend payout ratio is 35%. The firm's current financial data is provided below. a. What is the firm's sustainable growth rate? b. Create a Pro Forma balance sheet and determine EFN

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