Global Corp expects sales to grow by 7% next year. Assume that global pays out 53% 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 $7.90 million, how will this affect its payout policy? Global's current statements arebelow.

Pro Forma Financial Statements

Income Statement ($ million)

Sales 198.84

CostExcept Depreciation-187.40

EBITDA 11.44

Depreciation and Amortization -1.22

EBIT 10.22

Interest Expense (net)-7.70

Pre tax Income 2.52

Income tax -0.66

Net Income 1.86

Balance Sheet ($million)

Assets

Cash 24.27

Accounts Receivable 18.60

Inventories16.41

Total Current Assets59.28

Property Plant and Equipment 120.03

Total Assets179.31

Liabilities and Equity

Accounts Payable 37.29

Long Term Debt 119.43

Total Liabilities 148.91

StockholdersEquity 21.98

Total Liabilities and Equity 170.89

The amount of net new financing needed for Global is $

If Global decides that it will limit its new financing to only$7.90 million,then it must (increase or cut) its payout to shareholders by $ ___ million to make up the difference on its balance sheet.

Income Statement ($ million)

Net Sales 185.83

Costs Except Depreciation -175.14

EBITDA 10.69

Depreciation and Amortization -1.14

EBIT 9.55

Interest Income (expense) -7.70

Pre tax income 1.85

taxes -0.48

Net Income 1.37

Balance Sheet ($ million)

Assets

Cash 22.68

Accounts Receivable 17.38

Inventories15.34

Total current assets 55.40

Net Property Plant, and Equipment 112.18

Total Assets167.58

Liabilities and Equity

Accounts Payable 34.85

Long Term Debt 111.62

Total Liabilities 146.47

Total Stockholders Equity 21.11

Total Liabilities and Equity167.58