How much will they need to raise in capital markets in the


HJK Corporation expects sales to grow at a rate of 17% during the next year. Their asset turnover is expected to remain constant at 1.7x. They expect a profit margin of 10% next year and plan to retain half of their earnings. If the company’s assets are currently valued at $3.5 million, how much will they need to raise in capital markets in the upcoming year assuming that the company is operating at 100% capacity?

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Financial Management: How much will they need to raise in capital markets in the
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