What will happen to afn

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Question 1: Suppose MMC Industries has calculated its additional funds needed (AFN) to be $23,000,000, but now management is considering raising the previously assumed dividend payout ratio from 35% to 40%. If the payout ratio is increased, what will happen to AFN?

A. It will increase to some value greater than $23,000,000.

B. It will remain at $23,000,000.

C. It will fall to some value below $23,000,000.

D. The answer depends on MMC's growth rate in sales.

E. The answer depends on MMC's profit margin

Reference no: EM132511973

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