bohemian manufacturing company reported sales of 775000 at the end of last year, but this year, sales are expected to grow by 6%. bohemian manufacturing expects to maintain its current profit margin of 21%and dividend payout ratio of 25%. the firms total assets equaled 475000 and were operated at full capacity. The balance sheet shows the following current liabilities: AP $65000, notes payable $40000 and accrued liabilities of $65000. based on the afn equation, what is the firms afn for the coming year?

a negatively aligned AFN value represents:

A. a point at which the funds generated within the firm equal the demands for funds to financethe firms future expected sales requirements

B. a surpluse of internally generated fund that can be invested in physical or financial assets or paid out as additional dividens

c. a shortage of internally generated funds that must be raised outside the comapny to finance the company's forecasted future growth.

Because of excessive funds this Company is thinking about raising its divident payout ratio to satisfy shareholders. what percentage of its earning can they pay to shareholders without needing to raise any external capital?

A. 83.6%

B. 88%

C. 70.4%

D. 66%