ABC's earnings are expected to be a total amount of $50,000,000. ABC is a very conservative company and is financed solely with common stock. The required rate of return on retained earnings is 12 percent, whereas the cost of newly raised capital is 14 percent because of issuance costs.

1.Based on the residual dividend approach, if ABC has $30,000,000 of investment projects with expected returns greater than 12 percent, what is the total amount of dividends that ABC pays?

2.Based on the residual dividend approach, if ABC has $50,000,000 of investment projects with expected returns greater than 14 percent, what is the total amount of dividends that ABC pays?