Merrillan Motors had earnings of $8 million last year. It made $5 million of investments in projects with positive net present values. Pat Collins owns 20% of the firm's common stock. Assume that Pat desires no change in proportional ownership of Merrillan and the firm wishes to maintain a constant debt-equity ratio. What will be Pat's action in response to:

a. Merrillan 's paying out dividends of $5 million?

b. Merrillan's paying out dividends of $1 million?

c. Merrillan's paying out dividends of 3 million.