1.) Telecommunications has a target capital structure that consists of 70 percent debt and 30 percent equity. The company anticipates that its capital budget for the upcoming year will be $6,000,000. If Axel reports net income of $3,000,000 and it follows a residual dividend payout policy, what will be its dividend payout ratio?

2.) Grullon Co. is considering a 7-for-3 stock split. The current stock price is $75.00 per share What is the stock's expected price following the split?

3.) Discuss what is meant by signaling from dividend payouts and the clientele effect involving dividend policy.

4.) Describe a sunk cost, opportunity cost and externality effect in regard to project cash flows.