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Biggie Inc. maintains a payout ratio of 40%. Sales last year were $700mm. Next year's sales are projected to increase by 15%. If the firm's

Biggie Inc. maintains a payout ratio of 40%. Sales last year were $700mm. Next year's sales are projected to increase by 15%. If the firm's net margin is 5%, what of the following is closest to the forcast change in retained earnings for next year?

$22.25mm
$20mm
$25.5mm
$24mm

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