Wagner Industrial Motors, which is currently operating at full capacity, has sal
ID: 2626267 • Letter: W
Question
Wagner Industrial Motors, which is currently operating at full capacity, has sales of $2,340, current assets of $680, current liabilities of $370, net fixed assets of $1,530, 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?
$172.30
$245.70
$234.00
$55.30
$11.70
Explanation / Answer
$245.70
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