Bohemian Manufacturing Company reported sales of $743,000 at the end of last year, but this year, sales are expected to grow by 10%. BMC expects to maintain its current profit margin of 20% and dividend payout ratio of 20%. The following information was taken from BMC's balance sheet: Total assets: Accounts payable: Notes payable: Accrued liabilities: $425,000 $80,000 $25,000 $75,000 Based on the AFN equation, the firm's AFN for the current year is 1 -$93,391 -$114,145 -$103,768 A positively signed AFN value represents: - $108,956 O A point at which the funds generated within the firm equal the demands for funds to finance the firm's future expected sales requirements O A shortage of internally generated funds that must be raised outside the company to finance the company's forecasted future growth O A surplus of internally generated funds that can be invested in physical or financial assets or paid out as additional dividends 0 A surplus of internally generated funds that can be invested in physical or financial assets or paid out as additional dividends Because of its excess funds, Bohemian Manufacturing Company is thinking about raising its dividend payout ratio to satisfy shareholders. BMC could pay out of its earnings to shareholders without needing to raise any external capital. (Hint: What can BMC in 58.5% Hividend payout ratio to before the AFN becomes positive?) 75.2% 62.6% 83.5%