How much external financing will the firm have to seek

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Axie Supply Co., expects sales next year to be $390,000. Inventory and accounts receivable will increase by $60,000 to accommodate this sales level. The company has a steady profit margin of 20 percent with a 45 percent dividend payout.

How much external financing will the firm have to seek? Assume there is no increase in liabilities other than that which will occur with the external financing.

Reference no: EM13256386

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