4) The (TBMS) Co. is reviewing its debt and dividend policies as well as its capital investment plans. It has grown very rapidly in the past few years and has financed this growth in several ways including debt, new equity, and retained earnings. As part of their strategy they would like to begin paying dividends and would like to review the impact of these dividends upon their capital budget and various sources of financing. Assuming a debt to equity ratio of 25%, and a payout ratio of 80%, you will need to find out what amount of common stock would be required next year if the investment level is $250, and earnings are expected to be $200. If TBMS were either unwilling or unable to sell new common stock, then the investment policy, or debt policy, or dividend policy would need to be adjusted (be a residual policy). Based on the given information, fill in the blanks of the following matrix. Assume the firm currently has $1,000 in equity. (20 points) 000000000CDDDDDDDDDDDDDDDDDDDDDD00000000000000DCCCCCCCCCCCCCCCCCCCCCCC No External Equity CCCCCCCCCCCCCCCCCCCCCC06c0cececececececeo0000000000000000000-00000 Invest. D/E Div. No Resid. Resid. Resid. Resid. CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC0000CDBC ceDDDDDDC000000000000000 Before: Debt of firm total Equity of firm total Debt/asset of firm Investments purchased Earnings Payout Ratio Dividends Earnings Retained External Financing: Debt used for project Equity used for project After: Debt of firm total Equity of firm total Debt/asset