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TCC had sales for the year ended 12/31/15 of $50 million. The firm follows a policy of paying all net earnings out to its common stockholders in cash dividends. Thus, TCC generates no funds from its earnings that can be used to expand its operations. (Assume that depreciation expense is just equal to the cost of replacing worn-out assets.)
How do I determine how much “New” financing a company will need based on a balance sheet (pro forma) and sales for the following year?
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