Dividend Policy Integrated Waveguide Technologies Inc. (IWT) is a 6-year-old company founded by Hunt Jackson and David Smithfield to exploit meta material plasmonic technology to develop and manufacture miniature microwave frequency directional transmitters and receivers for use in mobile Internet and communications applications. IWT's technology, although highly advanced, is relatively inexpensive to implement, and its patented manufacturing techniques require little capital as compared to many electronics fabrication ventures. Because of the low capital requirement, Jackson and Smithfield have been able to avoid issuing new stock and thus own all of the shares. Because of the explosion in demand for its mobile Internet applications, IWT must now access outside equity capital to fund its growth, and Jackson and Smithfield have decided to take the company public. Until now, Jackson and Smithfield have paid themselves reasonable salaries but routinely reinvested all after-tax earnings in the firm, so dividend policy has not been an issue. However, before talking with potential outside investors, they must decide on a dividend policy. Your new boss at the consulting firm, Flick and Associates, which has been retaind to help IWT prepare for its public offering, has asked you to make a presentation to Jackson and Smithfield in which you review the theory of dividend policy and discuss the following issues. clientele effect, and (3) their effects on distribution policy. Part C: (1) Assume that IWT has completed its IPO and has a \$million capital budget planned for the coming year. You have determined that its present capital structure (82\% equity and 18% debt) is optimal, and its net income is forecasted at $ million. Use the residual distribution approach to determine IWT's total dollar distribution. Assume for now inat the distribution is in the form of a dividend. Suppose IWT has 100 million shares of stock outstanding. What is the forecasted dividend payout ratio? What is the forecasted dividend per share? What would happen to the payout ratio and DPS if net income were forecasted to decrease by 25% ? To increase by 25%