Question: Your firm is considering purchasing a new machine. With the new machine, sales are expected to increase from $18 million to $22 million. The firm

Your firm is considering purchasing a new machine. With the new machine, sales are expected to increase from $18 million to $22 million. The firm believes assets and liabilities vary directly with sales. The firm's profit margin is 10% and the dividend payout is 75%. The firm's current financial data is provided below: 1. What is the firm's sustainable growth rate? 2. Create a Pro Forma Balance Sheet and determine EFN

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