Arizflag Co. has the following information available: Year 2020: Sales S = $20 M, Assets A* = $15 M, N/P = $6 M, A/P = $2 M, Accruals = $1 M, Profit margin PM = 5%, AFN = $0.21 M Year 2021: with the secured external funding of $0.21 M, the projected sales Snew = $22

Question: what payout ratio ABC can implement given the projected sales with the support of secured AFN?

A.90%

B.50%

C.10%

D.0%

E. None of the others is correct