Lenberg Lens Company believes in the dividends-as-a-residual philosophy of dividend policy. This years earnings are expected to total $9 million. A very conservative company, Lenberg is financed solely with common stock. The required rate of return on retained earnings is 10 percent, whereas the cost of newly raised capital is 13 percent because of issuance costs. Enter your answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to the nearest whole number.

If Lenberg has $7 million of investment projects having expected returns greater than 10 percent, what total amount of dividends should Lenberg pay?

$ million

If Lenberg has $13 million of investment projects having expected returns greater than 13 percent, what total amount of dividends should Lenberg pay?

$ million