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 financial forecast follows. Year Earnings after tax ($ millions) Capital investment ($ millions) Target book value debt-to-equity ratio (%) Dividend payout ratio (%) Marketable securities ($ millions) (Year marketable securities = $250 million) 1 2 3 5 100 126 166 224 300 175 300 300 368 530 130 130 130 130 130 ? ? ? ? ? 250 250 250 250 250 a. According to this forecast, what dividends will the company be able to distribute annually without raising new equity and while maintaining a balance of $250 million in marketable securities? What will the annual dividend payout ratio be? (Hint: Remember sources of cash must equal uses at all times.) Note: Round dividends to the nearest million dollars and the payout ratio % to the nearest ones place. Year Dividends (millions) Divident Payout ratio (%) ($ millions) 1 2 3 4 5