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Piedomont Products LTD (PPL) has current sales of $60 million.sales are expected to grow to $80 million next year. PPL currentlyhas accounts receivables of $9 million, inventories of $15 millionand net fixed assets of $24 million. These assets are expected togrow at the same rate as sales over the next year. Accounts payableare expected to increase from their current level of $15 million toa new level of $19 million next year. PPL wants to increase itscash balance at the end of next year by $3 million over its currentcash balance (of $2 million). Earnings after taxes next year areforecasted to be $12 million. PPL plans to pay $2 million cashdividend. PPL intends to use 10% debt in its capital structure andthe marginal tax rate is 30 percenta. How much external financing is required by PPL nextyear?b. What is PPL’s sustainable growth rate.