Neebom Corporation, a manufacturer of toys, has asked for your advice on dividend policy. Neebom had a net income of $150 million in 2015 and reported depreciation of S20 million. Its balance sheets for 2014 and 2015 are below (in millions) Assets Liabilities 2014 2015 2014 $50 2015 Net Fixed Assets$750 Current Assets Current Liabilities Debt $60 $200$215 $650$720 $800 Cash $50 $100 Equity Non-cash $100$120 (a) Estimate how much Neebom paid out as dividends during 2015. (2 marks) (b) Estimate how much capital expenditure Neebom had in 2015. (2 marks) (c) Now assume that you have been given the following information on next year's projections for Neebom Corporation: Net Income, depreciation and non-cash working capital are expected to increase 10% from 2015 levels The firm has four projects that it is considering for next year: Project EBIT Investment Beta $6.67 million $30 million 3.33 million $20 million 4.17 million $20 million $8.33 million $35 million 1.2 1 1.1 Assume that the firm plans to finance these projects at a debt to capital ratio of 25%, and that the cost of debt is 8% Also suppose that the corporate tax rate is 40% and that the long-term Treasury bond rate is 7%. Estimate how much Neebom can afford to pav out next vear as dividends. (2 marks