Chancellor Industries has retained earnings available of $1.25 million. The firm plans to make two investments that require financing of $977,317 and $1.74 million, respectively. Chancellor uses a target capital structure with 61% debt and 39% equity. Apply the residual theory to determine what dividends, if any, can be paid out, and calculate the resulting dividend payout ratio.

The dividend amount, if any, that can be paid out is $___

The resulting dividend payout ratio is $___

Mama Leone's Frozen Pizzas uses 64,000 pounds of cheese per year. Each pound costs $5.50. The ordering cost for the cheese is $872.10 per order, and its carrying cost is $1.71 per pound per year. Calculate the firm's economic order quantity (EOQ) for the cheese. Mama Leone's operates 220 days per year and maintains a minimum inventory level of 2 days' worth of cheese. Assuming that the lead time to receive orders of cheese is 5 days, calculate the reorder point.

The EOQ that minimizes the total inventory costs is _______ pounds of cheese. (Round to the nearest whole number.)

The reorder point for Mama Leone's is _______ pounds of cheese. (Round to the nearest pound.)