5. Dividend Policy. Big Bend Tubing's dividend was $2.20 last year. Big Bend's target payout ratio is 50%. This year's earnings per share are $5. But Pablo Donoso, the CFO, worries about higher raw-material costs and forecasts average future earnings of only $4 per share over the next 3 years. Should Mr. Donoso cut or increase this year's dividend? How does your answer change if forecast average earnings are $3, $5, or $7? (LOI)