7. Assume that in 2019 the UDSM Ltd had total sales amounting to Tshs 1.2 billion. Assume further that the balance sheet items that vary directly with sales and UDSM's profit margin are as follows: Cash 5% Accounts receivable 15% Inventory 20% Net fixed assets 40% Accounts payable 15% Accruals 10% Profit margin after taxes 10% UDSM's dividend payout rate is 40 percent of earnings, and the balance in retained earnings at the end of 2019 was Tshs 396 million. Notes payable are currently Tshs 84 million while long-term bonds and common stock are constant at Tshs 60 million and Tshs 120 million, respectively. Required: (1) How much additional external capital will be required for 2020 if the company records a 15 percent increase in sales assuming that the company is already operating at full capacity? What will happen to external fund requirement if XYZ Ltd reduces the payout ratio, grows at a slower rate, or suffers a decline in its profit margin? Discuss each of these separately 11