Harvard Prep Shops, a national clothing chain had sales of $300 million last year. The business has a steady net profit margin of 25 percent and a dividend payout ratio of 40 percent. The balance sheet for the end of last year is shown below Balance Sheet December 31, 20% (5 millions) Assets Liabilities and Shareholders' Equity Cash $4 Accounts payable $17 Account receivable 22 Accrued expenses 11 Inventory 68 Other payables 23 Common stock 35 Plant and equipment 155 Retained earnings 163 Total assets $249 Total liabilities and equity $249 Harvard's anticipates a large increase in the demand for tweed sport coats and deck shoes A sales increase of 25 percent is forecast All balance sheet nems are expected to maintain the same percent-of-sales relationships as last year, except for common stock and retained earnings. No change in the number of common shares outstanding is scheduled, and retained earnings will change as dictated by the protits and dividend policy of the firm a. Will external linancing be required for the Prep Shop during the coming year? Yes Lid No b. What would the need for external financing be if the net profit margin went up to 30 percent and the dividend payout ratio was increased to 75 percent? (Enter the answer in millions. Round the final answer to 2 decimal places.) Required new funds $ million