Just Be Corporation has declared an annual dividend of \($1.00\) per share. For the year just ended, earnings were \($5\) per share.

a. What is Just Be’s payout ratio?

b. Suppose Just Be has seven million shares outstanding. Borrowing for the coming year is planned at \($13\) million. What are planned investment outlays assuming a residual dividend policy? What target capital structure is implicit in these calculations?