1.Ontario Inc. has reported net income of $500,000. If management decides to pay dividends of $175,000, what is the firm's payout ratio?

2.Manitoba Inc, has an expected capital budget of $250,000 for next year. The firm uses a target capital structure with a debt-to-equity ratio of 0.35. The projected net income for next year is expected to be $200,000. Using a residual dividend policy, how much will the firm expect to pay in dividends next year?