2. XY company is a fast-growing firm. In the past, the firm has earned a return of 25 per cent on its investments and this trend is likely to continue. The firm has been retaining 25 per cent of its earnings and paying 75 per cent of earnings as dividends. This policy has been justified on the grounds that dividends are generally preferred over retained earnings by shareholders. Would you recommend a change in the dividend policy? Why? Equity share capital (*100/share)