Global Corp. expects sales to grow by 6% next year. Assume that Global pays out 47% of its net income. Global developed the pro forma financial statements given below. If Global decides that it will limit its net new financing to no more than $5.81 million, how will this affect its payout policy? Global's current statements are in the following data table.

Income Statement ($million) Sales 197.41 Costs Except Depreciation -185.93 EBITDA 11.48 Depreciation and Amortization -1.21 EBIT 10.27 Interest Expense (net) -7.70 Pretax Income 2.57 Income Tax -0.67 Net Income 1.90

Balance Sheet ($million) Assets Cash 23.75 Accounts Receivable 18.90 Inventories 15.96 Total Current Assets 58.61 Property, Plant, and Equipment 118.96 Total Assets 177.57 Liabilities and Equity Accounts Payable 36.17 Long-term Debt 111.56 Total Liabilities 147.73 Stockholders' Equity 23.75 Total Liabilities and Equity 171.48

Click on the icons located on the top-right corners of the data tables below to copy their contents into a spreadsheet Income Statement ($ million) Net Sales Costs Except Depreciation EBITDA Depreciation and Amortization EBIT Interest Income (expense) 186.24 -175.41 10.83 1.14 9.69 7.70 Balance Sheet ($ million) Assets Cash Accounts Receivable Inventories Total Current Assets Net Property, Plant, and Equipment Total Assets 22.41 17.83 15.06 55.30 112.23 Pre-tax Income Taxes Net Income 1.99 0.52 1.47 167.53 Liabilities and Equity Accounts Payable Long-Term Debt Total Liabilities Total Stockholders' Equity Total Liabilities and Equity 34.12 111.56 145.68 21.85 167.53 The Tax Cuts and Jobs Act of 2017 emporarily allows 0 of staard depreciation practices during your career. bonus depreciation effectively e pe sin ca a expendit es H ever e il sil ude e c at forecast in his chapter and n ese problems anti a on the turn The amount of net new financing needed for Global is S (Round to two decimal places.)