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MAS Company expects its earnings to be $6 million and it's capital budgeting needs to be $8.5 million. Last year the company paid dividends equal

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MAS Company expects its earnings to be $6 million and it's capital budgeting needs to be $8.5 million. Last year the company paid dividends equal to $4.0 million. During the past few years, MAS has grown at a constant 3% rate, and this rate is expected to continue into the future. What will be MAS's total dividends this year if it follows: . A policy that required dividends to grow at its long term growth rate? . A pure residual dividend policy, where MAS's target debt/assets ratio is 30%

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