2) A) M&M currently has 5,000,000 shares of stock outstanding that have a current market price of $10. If all else remains constant, what will be the price of M&M's shares and the number of shares outstanding after each of the following? a. A 30 percent stock dividend. [ 6 marks) b. A four-for-one stock split. [ 6 marks] c. A 45 percent stock dividend. [5.5 marks] TOR] 2. B) i. In 2014, Zelle Company generated net profits of $1,750,000 and paid $total cash dividends of $375,000. (a) What was the dividend payout ratio? [ 4.5 marks) (b) If Zelle made net profits of $950,000 in the year 2015 and maintained the same payout ratio, what would be the dividends? [ 4 marks] (ii) Using the Residual dividend Model, find the dividend payout ratio if the projected income is $925,000 and Company ABC has a capital budget of $550,000 and maintains a capital structure of 70% equity and 30% debt. [9 marks]