Amount of additional equity financing needed

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Your firm has no long-term debt and does not pay dividends. The following information applies for the firm's current situation: sales of $48,000, current assets of $5,000, current liabilities of $6,400, net fixed assets of $52,500, and a profit margin of 6 percent. The firm will not issue long-term debt. Assets, short-term liabilities, and costs for the firm will change directly with sales which are predicted to increase 4 percent next year. What would be the amount of additional equity financing needed to achieve this level of growth?

Reference no: EM132473558

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