60% Debt Equity Yellow Duck Distribution Inc. is expected to generate $180,000,000 in net income over the next year. Yellow Duck Distribution's stockholders expect it to maintain its long-run dividend payout ratio of 25% of earnings. If the firm wants to maintain its current capital structure of 60% debt and 40% equity, the maximum capital budget it can support with this year's expected net income is $337,500,000.00 Yellow Duck Distribution is considering using more equity and less debt in its capital structure. Which of these statements best describes how this will affect the firm's annual dividend, assuming that all other factors are held constant? Yellow Duck Distribution will pay a smaller annual dividend if it goes forward with this decision. Yellow Duck Distribution's annual dividend will be greater if it goes forward with this decision. What kind of company is most likely to follow a strict residual distribution policy? OA firm with stable, predictable earnings and investment All companies A firm with highly variable earnings and investment A firm whose investment needs change often