1).Suppose a firm has a retention ratio of 39 percent and net income of $5.4 million. How much does it pay out in dividends?(Enter your answer in dollars not in millions.)

Dividend Amount=

2). If a firm has retained earnings of $22.9 million, a common shares account of $274.9

million, and additional paid-in capital of $99.9 million, how would these

accounts change in response to a 20 percent stock dividend? Assume market value

of equity is equal to book value of equity.(Enter your answers in dollars not in

millions.Leave no cells blank- be certain to

enter "0" wherever required.Do not round intermediate

calculations and round your final answers to the nearest whole dollar amount.

Indicate the direction of the effect by selecting "increase,"

"decrease," or "no change" from the dropdown menu.)

Retained Earnings- No Change __________________

Common Stock- No Change __________________

Additional Paid in Capital- No Change __________________

3).If a firm has retained earnings of $3.1 million, a common shares account of $5.1

million, and additional paid-in capital of $10.2 million, how would these

accounts change in response to a 10 percent stock dividend? Assume market value

of equity is equal to book value of equity.(Enter your answers in dollars not in

millions. Input all amounts as positive values. Indicate the direction of the

effect by selecting "increase," "decrease," or "no

change" from the drop-down menu.)

Retained Earnings- Decrease __________________

Common Stock- Increase __________________

Additional Paid in Capital- Increase __________________