Using the percentage-of-sales method to construct the firm's pro forma balance sheet for next year and calculate the external funds needed (EFN). Can Optical Scam eliminate the need for external funds by changing its dividend policy? If the company is reluctant to cut the dividend, what other options are available to the company to meet its growth objective? Sara Togas sells all its output to federal stores. The two companies are in a discussion of a possible merger. If they go ahead with the merger, Federal Stores will continue to sell goods worth $100 million, but the cost goods sold will reduce by $2 million. The following table shows selected financial data, in millions, for the two firms operating independently: If the merger goes ahead, what will be the net income and total assets for the combined company? Calculate the operating profit margin and the return on assets for Sara Togas, Federal Stores and the two firms combined after the merger. How does the merger affect these two ratios