Bohemian Manufacturing Company reported sales of $890,000 at the end of last year, but this year, sales are expected to grow by 7%. Bohemian expects to maintain its current profit margin of 21% and dividend payout ratio of 15%. The following information was taken from Bohemians balance sheet:

Total Assets	$425,000
Accounts Payable:	$80,000
Notes Payable:	$45,000
Accrued Liabilities:	$70,000

Based on the AFN equation, the firms AFN for the current year is

A. -150,736

B.-188,420

C.-135,662

D.-143,199

Because of its excess funds, Bohemian Manufacturing Company is thinking about raising its dividend 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 dividend payout ratio to before the AFN becomes positive?)

A.81.4%

B.72.3%

C.63.3%

D.90.4%