Can you assist me with question D and E please?

by how much will the company's earnings per share be diluted? ALTERNATIVE DIVIDEND POLICIES In 2013, Keenan Company paid dividends totaling $3,600,000 on net income of $10.8 million. Note that 2013 was a normal year and that for th past 10 years, earnings have grown at a constant rate of 10%. However, in 2014, earnings are expected to jump to $14.4 million and the firm expects to have profitable investment oppor tunities of $8.4 million. It is predicted that Keenan will not be able to maintain the 2014 level of earnings growth because the high 2014 earnings level is attributable to an exceptionally profitable new product line introduced that year. After 2014, the company will return to its previous 10% growth rate. Keenan's target capital structure is 40% debt and 60 % equity Calculate Keenan's total dividends for 2014 assuming that it follows each of the following policies: 1. Its 2014 dividend payment is set to force divid ends to grow at the long-run growth rate in earnings 2. It continues the 2013 dividend payout ratio 13 dividend payout ratico 3. It uses a pure residual dividend policy (40% of the $8.4 million investment is financed with debt and 60% with common equity). 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 residual dividend policy Which of the preceding policies would you recommend? Restrict your choices to the ones listed but justify your answer Assume that investors expect Keenan to p and to have the dividend grow at 10% after 2014, The stock's total market value is $180 million. What is the company's cost of equity? What is Keenan's long-nin average return on equity? [Hint: g-Retention rate ROE (1.0-Pay out ne) (ROE).! b. c. ay total dividends of s9,000,000 in 2014 d rage return on equity? [Hint: g Retention rate e. Does a 2014 dividendo 00 seean reasonable in view of your answers to Parts c and d? If not, should idend be higher or lower? Explain your