Sales for 2010 were $350 million anti net income for the year was $10.5 million, so the nn's prot margin was 3.0%. Upton paid dividends of $4.2 million to common stockholders, so its payout ratio was 40%. Its tax rate is 40%. and it operated at full capacity. Assume that all assetsisales ratios. spontaneous liabilities/sales ratios. the prot margin, and the payout ratio remain constant in 2011. a.) If sales are projected to increase by $70 million. or 20%, during 2011. use the AFN equation to determine Upton's projected external capital requirements. Sales growth rate $0.20 Final exam problem 50 $350.00 million A." 5.. $0.35 L 5. $0.05 Prot margin (M) $0.03 Payout ratio $0.40 A Sales $70.00 million 5 $420.00 million 1 AFN $13.44 million