Bohemian Manufacturing Company reported sales of $720,000 at the end of last year, but this year, sales are expected to grow by 9%. Bohemian expects to maintain its current profit marin of 21% and dividend payout ratio of 10%.

The following informations was taken from Bohemian's balance sheet

Total assets: $425,000

Accounts Payable: $60,000

Notes Payable: $ 45,000

Accrued Liabilities: $60,000

1) Based on the AFN equation, the firm's AFN for the current year is ______________ (Answer options: -$120,877, -$132,965 ,-$157,140 , -$114,833

2) Because of its excess funds, Bohemian Manufacturing Company is thinking about raising its divident payout ratio to satisfy shareholders. Bohemian could pay out ________ of its earnings to shareholders without needing to raise any external capital (HINT: what can bohemian increase its divident payout ratio to before the AFN becomes posititve?)

(answer options 66.6%, 83.3%, 62.5% , 75.0%