1) Mariam Store earned 400,000 this year and follows the residual dividend policy when paying dividends. Mariam has determined that it needs a total of 800,000 for investment in capital budgeting projects this year. If the company's debt/asset ratio is 60 percent, what will its dividend payout ratio be this year? Mariam has no preferred stock."

2) Majad Inc. applies the low regular dividend plus extras policy when determining how much of its income will be paid out as dividends. Majad's policy states that the minimum dividend that will be paid each year is 2.00 per share. But, when net income is greater than 100 million, the total dividend will be increased by 50 percent of the amount that exceeds 70 million. The firm currently has 10 million shares of stock outstanding. What will be the dividend per share if Majad earns 120 million?