A company uses a $40\%$ dividend payout ratio to pay its dividends. Just a few days ago it paid a $$1\mathrm{.}85$ per$-$share dividend. One year from now the company expects its earning per share to reach $$4\mathrm{.}85.$

Recall the Lintner's model $($see Ch$\mathrm{.}19).$ What does the model predict per$-$share dividend to be depending on that company's "adjustment coefficient"? Calculate the company's next year's per$-$share dividend if $...$

a$....$ the adjustment coefficient equals $\mathrm{.}6.($Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

b$....$ the adjustment coefficient equals $\mathrm{.}9.($Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

$\backslash$table$[[$a$.,$Dividend,$],[$b$.,$Dividend,$]]$

c$.$ Which of the two adjustment coefficients $($see above$)$ would you call more conservative?

$\mathrm{.}6$

$\mathrm{.}9$