Boehm Corporation has had stable earnings growth of 10% a year for the past 10 years, and in 2015 Boehm paid dividends of $3.7 million on net income of $16.0 million. However, in 2016 earnings are expected to jump to $25.6 million, and Boehm plans to invest $11.2 million in a plant expansion. This one-time unusual earnings growth won't be maintained, though, and after 2016 Boehm will return to its previous 10% earnings growth rate. Its target debt ratio is 35%. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. X Open spreadsheet a. Calculate Boehm's total dividends for 2016 under each of the following policies. Enter your answers in dollars. For example: $2.9 million should be entered as $2,900,000. Do not round intermediate calculations. Round your answers to the nearest dollar. 1. Its 2016 dividend payment is set to force dividends to grow at the long-run growth rate in earnings. $ 2. It continues the 2015 dividend payout ratio. $ 3. It uses a pure residual policy with all distributions in the form of dividends (35% of the $11.2 million investment is financed with debt). 1. Its 2016 dividend payment is set to force dividends to grow at the long-run growth rate in earnings. $ 2. It continues the 2015 dividend payout ratio. $ 3. It uses a pure residual policy with all distributions in the form of dividends (35% of the $11.2 million investment is financed with debt). $ 4. It employs a regular-dividend-plus-extras policy, with the regular dividend being based on the long-run growth rate and the extra dividend being set according to the residual policy. How much will the extra dividend be? $ b. Which of the preceding policies would you recommend? Restrict your choices to the ones listed. $ b. Which of the preceding policies would you recommend? Restrict your choices to the ones listed. 1 2. 3 Work Reset Problem 4