When Using the Percent-Of-Sales Method in Forecasting the Funds Needed

When using the percent-of-sales method in forecasting the funds needed, which of the following is not true?

A) As the dividend payout ratio increases, the required new funds also increase.
B) Required new funds decrease as profit margin increases.
C) Required new funds increase as the dividend payout decreases.
D) As the tax rate increases, the required new funds increase.