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Question: Antivirus Inc. expects its sales next year to be $4,400,000. Inventory and accounts receivable will increase by $670,000 to accommodate this sales level. The company has a steady profit margin of 20 percent with a 40 percent dividend payout.

How much external financing will the firm have to seek? Assume there is no increase in liabilities other than that which will occur with the external financing.

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