Wagner Industrial Motors, which is currently operating at full capacity, has sales of $2,380, current...
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Wagner Industrial Motors, which is currently operating at full capacity, has sales of $2,380, current assets of $720, current liabilities of $410, net fixed assets of $1,570, and a 5 percent profit margin. The firm has no long-term debt and does not plan on acquiring any. The firm does not pay any dividends. Sales are expected to increase by 10 percent next year. If all assets, short-term liabilities, and costs vary directly with sales, how much additional equity financing is required for next year?
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