8. Rockton Plastics has made changes to its dividends over the last 14 years . On the basis ofa target payout ratio of 30%, according to the Lintner model, the firm would have preferred to make a different set of dividend changes. Both the actual and preferred dividend changes are shown on the following table. What

"speed of adjustment" factor is implied by these two dividend change series?

(Use ofa regression program, such as one provided with a compute spreadsheet, is recomrnended.)

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Year 1 Actual Change In Dividends Preferred Change In Dividends -$.28 -$.47 -.09 -.16 3 -.05 -.08 -.01 -.02 .01 .02 .04 .07 7 .01 .01 .03 .05 .03 .05 10 .01 .02 11 .04 .07 12 .03 .06 13 .03 .05