Wish Inc. sells low-cost items online. Its most recent income statement (whole year 2021) and balance sheet (end of year 2021) are given below: Sales, total assets and costs are expected to grow by 10% the following year. If company expects to keep Debt-Equity ratio unchanged from year to year, based on your projected figures, what's the amount of dividend (\$ million) that company is likely to pay out in the following year? Correct Since sales and costs increase by 10%, net income will also grow by 10% : NI1=NI0(1+g)=6(1+0.1)=6.6 Since Debt-Equity ratio stays unchanged from year to year, Equity and Debt will increase by 10% as Asset grows by 10% : E=47.40.1=4.74 If company expects to keep Debt-Equity ratio unchanged from year to year, based on your projected figures, what's the amount of dividend (\$ million) that company is likely to pay out In the following year? Correct Since sales and costs increase by 10%, net income will also grow by 10% : Nl1=NI0(1+g)=6(1+0.1)=6.6 Since Debt-Equity ratio stays unchanged from year to year, Equity and Debt will increase by 10% as Asset grows by 10% : E=47.40.1=4.74 E and Nl1 do not tie, dividend can explain the difference, as E=Nl1 - Div, therefore dividend to be paid in the following year is likely to be: Dlv=Nl1E=1.86 If company will not pay dividend in the following year, nelther will any equity financing transactions (e.g., new capital injection, share repurchase) occur in the following year, what is your projected debt balance