1. The Chester Corporation is considering their dividend policy for this year. They are projecting $5.475 million in profit. What is Chester planning to pay in dividends this year?

Last Year ($M) This Year ($M) Cash $12 $16 Accts Receivable $ 6 $ 8 Inventory $7 $9 Plant & Equip $22 $22 Acc Depreciation ($8) ($10) Total Assets $39 $45 Accounts Payable $5 $6 Current Debt $2 $2 Long Term Debt $11 $11 Common Stock $7 $9 Retained Earnings $20 $22 Tot Liab & Equity $39 $45