1. A company expects to have net income of $3,100,000 during the next year. Its target capital structure is 30% debt and 70% equity. The company has determined that the optimal capital budget for the coming year is $3,000,000. If Davis follows a residual distribution policy (with all distributions in the form of dividends) to determine the coming years dividend, then what is Davis's dividend payout ratio?

A. 3.82%

B. 51.6%

C. 32.3%

D. 19.2%

2. A stock was trading at $200 per share before its recent 4-for-1 stock split. The 4-for-1 split led to a -10% change in the stock price. What was the stock price after the stock split?

A. $45.0

B. $180.0

C. $50.0

D. $55.0