Boehm Corporation has had stable earnings growth of $8\%$ a year for the past $10$ years and in $2019$ Boehm paid dividends of $$4$ million on net income of $$10$ million. However, net income is expected to grow by $28\%$ in $2020,$ and Boehm plans to invest $$7\mathrm{.}5$ million in a plant expansion. This one time unusual earnings growth won't be maintained, though, and after $2020$ Boehm will return to its previous $8\%$ earnings growth rate. Its target debt ratio is $34\%.$ Boehm has $1$ million shares of stock.

Calculate Boehm's dividends per share for $2020$ under each of the following policies:

Its $2020$ dividend payment is set to force dividends to grow at the long$-$run growth rate in earnings.

It continues the $2019$ dividend payout ratio.

It uses a pure residual policy with all distributions in the form of dividends $(34\%$ of the $$7\mathrm{.}5$ million is financed with debt$).$

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.

Which of the preceding policies would you recommend? Restrict your choices to the ones listed, but justify your answer.