(1) (1 point) The United Artificial Intelligence, Inc. (NYSE: UAI) expects next year's net income to be $20 million. UAl's debt ratio is currently 50%. UAI has $10 million profitable investment opportunities, and it wishes to maintain its current debt ratio. According to the residual distribution model (assuming all payments are in the form of dividends), how large should UAl's dividend payout ratio be next year? (2) (2 points) Suppose you own 1,000 commoti shares of Crypto Scam King, Inc. (NASDAQ: CSK). The EPS is $2.00, the DPS is $1.00, and the stock sells for $10 per share. CSK announces a 2 -for-1 split. Immediately after the split, (a) how many share will you have, (b) what will be adjusted EPS and (c) DPS be, and (d) what would you expect the stock price to be? (3) (2 points) Paramount Electronics, Inc. (NYSE: PE) has four independent projects from which to choose, each of which requires a different amount of investment. The projects have different levels of risk, and therefore different costs of capital. Their projected IRRs and costs of capital are as follows: Project K: Cost of capital =23%;IRR=20%; Required investment =$5 million Project L: Cost of capital =14%;IRR=17%; Required investment =$6 million Project M: Cost of capital =13%;RR=12%; Required investment =$3 million Project Q: Cost of capital =8%;IRR=11%; Required investment =$4 million The firm intends to maintain its 40% debt and 60% common equity capital structure, and its net income is expected to be $10 million. (a) Which projects can be accepted by the firm? Why? Justify your reasoning. (b) If the company maintains its residual dividend policy (with all distributions in the form of dividends), what will its payout ratio be