4. More on the AFN (Additional Funds Needed) equation Green Moose Industries reported sales of $720,000 at the end of last year, but this year, sales are expected to grow by 7%. Green Moose expects to maintain its current profit margin of 20% and dividend payout ratio of 30%. The following information was taken from Green Moose's balance sheet: Total assets: Accounts payable: Notes payable: Accrued liabilities: $500,000 $75,000 $40,000 $80,000 Based on the AFN equation, the firm's APN for the current year is A negatively-signed AFN value represents a surplus of internally generated funds that can be invested in physical or financial assets or paid out as additional dividends. a shortage of internally generated funds that must be raised outside the company to finance the company's forecasted future growth a point at which the funds generated within the firm equal the demands for funds to finance the firm's future expected sales requirements Because of its excess funds, Green Moose is thinking about raising its dividend payout ratio to satisfy shareholders. What percentage of Its earnings can Green Moose pay to shareholders without needing to raise any external capital? (Hint: What can Green Moose Increase its dividend payout ratio to before the AFN becomes positive?) 75.9 71.7 63.2 84.3