. 1) XYZ Co. has the following quarterly earnings projections: 1stquarter $25,000 loss;

2ndquarter + $50,000; 3rdquarter + $175,000; 4thquarter + $115,000. The retention ratio is

40% and the company follows a cyclical dividend policy. What is the dividend for the

4thquarter?

A. $31,000

B. $46,000

C. $65,000

D. $69,000

E. $105,000

2)

JimGyms has the following quarterly earnings projections. The company retains 60% of

its earnings and follows a stable dividend policy each year. What is the dividend for the

1st quarter	$650,000
2nd quarter	$800,000
3rd quarter	$550,000
4rd quarter	$1,000,000

2ndquarter?

A. $220,000

B. $260,000

C. $300,000

D. $320,000

E. $400,000