Below are the projected income statement and balance sheet for Lai-Chee Bhd., for 2020 (in RM thousands):

Income statement	2020		Balance sheet	2020
Sales	350		Current assets	100
Costs	310		Net fixed assets	200
Taxes @ 20%	8		Total assets	300
Net income	32		Payables	25
Dividends	10		Other current liabilities	50
Retained earnings	22		Long-term debt	75
			Shareholders equity	150
			Total liabilities & equity	300

(a) Assuming that Lai-Chee has optimal proportions of costs and assets to sales, and a fixed dividend payout policy, what is the firms internal growth rate (IGR)?

(b) Assuming further that Lai-Chee also has an optimal capital structure, what is the firms sustainable growth rate (SGR)?

(c) If Lai-Chee is operating at 95% capacity, and given that the proportion of costs to sales is optimal, its dividend payout policy is fixed, and its sales are expected to grow by RM40,000 in 2021, what is the firms external financing needed (EFN) for 2021? (Hint: use the EFN formula). Briefly explain the calculated EFN.

(d) Given the EFN above, if Lai-Chee wants to retain its capital structure (debt-equity mix), which it considers to be optimal, but it is instead willing to change its dividend policy, what is the amount of dividend that would be paid out in 2021, and what is the amount of non-payables debt that it would have in 2021?