Boehm Corporation has had stable earnings growth of 8% a year for the past 10 years, and in 2021 Boehm paid dividends of $3 million on net income of $5 million. However, net income is expected to grow by 32% in 2022, and Boehm plans to invest $3.5 million in a plant expansion. This one-time unusual earnings growth won't be maintained, though, and after 2022 Boehm will return to its previous 8% earnings growth rate. Its target debt ratio is 33%. Boehm has 1 million shares of stock. Calculate Boehm's dividend per share for 2022 under each of the following policies: Its 2022 dividend payment is set to force dividends to grow at the long-run growth rate in earnings. Round your answer to the nearest cent. $ It continues the 2021 dividend payout ratio. Round your answer to the nearest cent. $ It uses a pure residual policy with all distributions in the form of dividends (33% of the $3.5 million investment is financed with debt). Round your answer to the nearest cent. $ 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. What will the extra dividend be? Round your answer to the nearest cent. $ Which of the preceding policies would you recommend? -Select-

Boehm Corporation has had stable earnings growth of 8% a year for the past 10 years, and in 2021 Boehm paid dividends of $3 million on net income of $5 million. However, net income is expected to grow by 32% in 2022 , and Boehm plans to invest $3.5 million in a plant expansion. This one-time unusual earnings growth won't be maintained, though, and after 2022 Boehm will return to its orevious 8% earnings growth rate. Its target debt ratio is 33%. Boehm has 1 million shares of stock. a. Calculate Boehm's dividend per share for 2022 under each of the following policies: 1. Its 2022 dividend payment is set to force dividends to grow at the long-run growth rate in earnings. Round your answer to the nearest cent. $ 2. It continues the 2021 dividend payout ratio. Round your answer to the nearest cent. $ 3. It uses a pure residual policy with all distributions in the form of dividends ( 33% of the $3.5 million investment is financed with debt). Round your answer to the nearest cent. $ 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. What will the extra dividend be? Round your answer to the nearest cent. \$ b. Which of the preceding policies would you recommend