Question: 2. The Smith Co., which is currently operating at full capacity, has sales of $3,000, current assets of $800, current liabilities of $400, net fixed
2. The Smith Co., which is currently operating at full capacity, has sales of $3,000, current assets of $800, current liabilities of $400, net fixed assets of $1,900, and a 6% 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 9% next year. If all assets, liabilities, and costs vary directly with sales, how much additional equity financing is required for next year? (7 Points) $10.80 $40.00 $103.50 $196.20 $207.00
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