How much external financing will the firm have to seek


Antivirus Inc. expects its sales next year to be $2,500,000. Inventory and accounts receivable will increase $480,000 to accomodate this sales level. The company has a steady profit margin of 15 percent with a 35 percent dividend payout. How much external financing will the firm have to seek? Assume there is no increase in liabilites other than that which will occur with the external financing.

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Finance Basics: How much external financing will the firm have to seek
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