This is a more difficult but informative problem. James Brodrick & Sons, Incorporated, is growing repidly 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 (5 millions) Capital investment (5 millions) Target book value debt-to-equity ratio (X) Dividend payout ratio (X) Marketable securities (5 millions) (Year 0 marketable securities $230 million) 1 100 170 130 Year Dividends (millions) Divident Payout ratio (%) ? 230 2 122 300 130 ($ millions) 3 7 230 3 162 300 130 7 4 218 364 130 7 230 5 300 510 130 7 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 $230 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 dollers and the payout ratio % to the nearest ones place. 230