Problem $6-11$

This is a more difficult but Informative problem. James Brodrick & Sons, Incorporated, is growing rapidly and, if at all possible,

would like to finance its growth without selling new equity. Selected information from the company's five$-$year financlal forecast

follows.

a$.$ According to this forecast, what dividends will the company be able to distribute annually without ralsing new equity and

while malntaining a balance of $$200$ million In marketable securitles$?$ What will the annual dividend payout ratlo be$?($Hint:

Remember sources of cash must equal uses at all times.$)$

Note: Round dlvidends to the nearest million dollars and the payout ratlo $\%$ to the nearest ones place.