The Fast Growth Company expects sales to grow by 35% next year. It has total...
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The Fast Growth Company expects sales to grow by 35% next year. It has total assets of $4,500,000, current sales of $5,200,000, and net income of $1,250,000. If all assets and costs (including taxes) vary directly with sales, and the firm expects to maintain its dividend payout ratio of 50%, how much external financing will it need to support its growth?
$625,250
$731,250
$935,750
$843,750
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