Problem II Boehm Corporation has had stable earnings growth of 8%. a year for the past 10 years, and in 2013 Boehm paid dividends of $2.6 million on net income of $9.8 million. However, in 2014 earnings are expected to jump to $12.6 million, and Boehm plans to invest $7.3 million in a plant expansion. This one-time unusual earnings growth won't be maintained though. and after 2014 Boehm will return to its previous 8% earnings growth rate. Its target debt ratio is 35%. ... Calculate Boehm's total dividends for 2014 under each of the following policies: Its 2014 dividend payment is set to force dividends to grow at the long -run growth rate in earnings. It continues the 2013 dividend payout ratio It uses pure residual policy with all distributions in the form of dividends (35% of the $7.3 million is financed with debt). It employs a regular -dividend -plus -extras policy, with the regular dividend being based on the long run growth rate and the extra dividend being set according to the residual policy. t Which of the preceding policies would you recommend? Restrict your choice to the ones listed but justify your answer. Does a 2014 dividend of $9 million seem reasonable in view of your answers to pans (a) and (b)? If not. should the dividend be higher or lower