Assume Starbucks is anticipating sales growth of 10% for the year ending 2022. Based upon the self-supporting growth rate:

A) Starbucks will have sufficient funding supplied by spontaneously generated liabilities and its addition to retained earnings, i.e. internal common equity, to support its forecasted growth for 2022.

B) Starbucks will be able to increase its dividend payout in 2022 while supporting its forecasted growth rate, without needing to obtain additional funding.

C) Starbucks will have to obtain additional debt and/or equity financing to be able to meet its sales growth forecast for 2022.

D) Starbucks cannot determine whether it will need to raise additional funding from investors to support its 2022 sales growth forecast.

Assumptions and Corresponding Data
Sales:
Growth rate in sales (g)	10%
Sales (S0)	$ 29,060.6
Forecasted sales (S1)	$ 31,966.7
Change in sales (S = gS0)	$ 2,906.1
Assets:
Assets (A0*)	$ 31,230.4
Capital intensity ratio (A0*/S0)	1.07
Liabilities:
Spontaneous liabilities (L0*)	$ 5,901.2
Spont. liab./Sales (L0*/S0)	0.20
Ratios:
Dividend Payout ratio (POR or DPO)	52.1%
Profit margin (M or PM)	14.5%
Additional Funds Needed
Additional Assets Needed	$ 3,123.0
Spontaneously Generated Liabilities	$ 590.1
Reinvested Earnings	$ 2,212.9
Additional Funds Needed	$ 320.0
Self-Supporting Growth Rate
M(1-POR)S0	$ 2,011.7
A0* - L0* - M(1-POR)S0	$ 23,317.5
Self-Supporting Growth Rate (g)	8.6%