How much external financing will the firm have to seek

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Axle Supply Co. expects sales next year to be $300,000. Inventory and accounts receivable will increase by $60,000 to accommodate this sales level. The company has a steady profit margin of 10% with a 30% 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 external financing.

Reference no: EM13288341

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