Chapter 6 - Forecasting 60. Maroon Runners Inc. reported dividends declared of $70 million. The dividends have not been paid yet. Based on this information update the balance sheet below (numbers in millions): Items Before Change After Cash 150 Receivables 200 PP&E 300 Other 50 Total assets 700 Payables 40 Debt 300 Common stock 200 Retained earnings 100 Other 60 Total liabilities and equity 700 61. Maroon Runners Inc. reported dividends declared of $70 million. Assume that dividends are declared and paid simultaneously. Based on this information update the balance sheet below (numbers in millions): Change After Items Cash Receivables PP&E Other Total assets Payables Debt Common stock Retained earnings Other Total liabilities and equity Before 150 200 300 50 700 40 300 200 100 60 700 62. Explain why it may be sensible to assume a dividend payout ratio of 100% in the terminal year (i.e. terminal value driver)