Question: Urbans, which is currently operating at full capacity has current assets of $6,500, net fixed assets of $85,500, current liabilities of $7,250, no long-term debt

Urbans, which is currently operating at full capacity has current assets of $6,500, net fixed assets of $85,500, current liabilities of $7,250, no long-term debt and does not plan on acquiring any, dividend of $1,880, interest expense of $800, depreciation is $662.5, variable cost of $35,000, fixed cost of $7,600, and the addition to retained earnings of $470. The tax rate is 20 percent, and the unit price is expected to increase by 3 percent next year. All assets, short-term liabilities, and costs vary directly with sales. How much additional equity financing is required for next year?

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