B2 (Dividend policy) A firm has 20 million common shares outstanding. It currently pays out $1.50 per share per year in cash dividends on its common stock. Historically, its payout ratio has ranged from 30% to 35%. Over the five-year period, what is the maximum overall payout ratio the firm could achieve without triggering a securities issue? Recommend a reasonable dividend policy for paying out discretionary cash flow in years 1 through 5. 1 2 3 4 5 Thereafter Earnings 100 125 150 120 140 150+ per year Discretionary 50 70 60 20 15 50+ per year cash flow