Coppell Timber Company has total earnings last year of $5,000,000 but expects total earnings to drop to $ 47,50000 this year because of a slump in the housing industry. There are currently 1,000,000 shares of common stock year. The company has $ 4,000,000 worth of investments to undertake this year.The company finances 40% of its investments with debt and 60% with equity capital. The company paid $3.00 per share in dividends last year.

1.If the company follows a pure residual dividend policy, how large a dividend will each shareholder receive this year?

2, If the compay maintains a constant dividend payout ratio each year,how large a dividend will each shareholder receive this Year?

3. If the company follows a constant dollar dividend policy, how large a dividend will each shareholder receive this year?