Sales for 2010 were $350 million and net income for the year was $10.5 million, so the firm's profit margin was 3. Upton paid dividends of $4.

Sales for 2010 were $350 million and net income for the year was $10.5 million, so the firm’s profit margin was 3.0%. Upton paid dividends of $4.2 million to common stockholders, so its payout ratio was 40%. Its tax rate is 40%, and it operated at full capacity. Assume that all assets/sales ratios, spontaneous liabilities/sales ratios, the profit margin, and the payout ratio remain the constant in 2011.a.