Question 3: You have recently been appointed CEO of Layfayette., a wholesale distributor of baguettes and other French delicacies. One day your CFO reminds you that next week you will have to make recommendations to the board of directors regarding this year's annual dividend. This catches you totally by surprise. Luckily, the CFO was kind enough to provide you with some additional information. He shows you the projected income statement and balance sheet, without the effect of any dividend declaration. Income Statement: Sales COGS..... Gross profit..... Operating expenses. Operating income before interest.. Interest expense.... Income before tax.. Income tax (30%). Net income..... 44,000,000 29,400,000 14,600,000 6,000,000 8,600,000 1,000,000 7,600,000 2,300,000 5,300,000 Statement of Financial Position: Current Assets Cash 4,000,000 Accounts receivable. 5,000,000 Inventory. 2,000,000 Other....... 3,700,000 Total Current Assets. 14,700,000 Long-term investments 7,000,000 Property, plant and equipment (net). 17,000,000 Total Assets. 38,700,000 Current Liabilities 2.000.000