Question: Assume (1) that SEC was operating at full capacity in 2004 with respect to all assets, (2) that all assets must grow proportionally with sales

Assume (1) that SEC was operating at full capacity in 2004 with respect to all assets, (2) that all assets must grow proportionally with sales (3) that accounts payable and accruals will also grow in proportion to sales, and (4) that the 2004 profit margin and dividend payout will be maintained. Under these conditions, what will the company’s financial requirements be for the coming year? Use the AFN equation to answer this question.

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