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Global developed the pro forma financial statements given below. Assume that Global Corp. expects sales to grow by 11% next year, pays out 50% of
Global developed the pro forma financial statements given below. Assume that Global Corp. expects sales to grow by 11% next year, pays out 50% of its net income, and needs $11.9 million of net new financing. If Global decides that it will limit its net new financing to no more than $11.3 million, how will this affect its payout policy? Click the icon to view Global's financial statements. its payout to shareholders by $ million to make up the difference on its balance If Global limits new financing to only $11.3 million, then it would need to sheet. (Round to one decimal place.) Data Table Income Statement ($ million) Net Sales Costs Except Depreciation EBITDA Depreciation and Amortization EBIT Interest Expense (net) Pre-tax Income Income Tax Net Income 187.7 - 182.7 5.0 - 1.2 3.8 - 7.7 - 3.9 1.0 -2.9 Balance Sheet($ million) Assets Cash Accounts Receivable Inventories Total Current Assets Net Property, Plant, and Equipment Total Assets 22.4 17.1 15.8 55.3 114.2 169.5 Liabilities and Equity Accounts Payable Long-Term Debt Total Liabilities Total Stockholders' Equity Total Liabilities and Equity 33.5 118.6 152.1 17.4 169.5
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