Red Bison Petroleum Producers Company is expected to generate $140,000,000 in net income over the next year. Red Bison Petroleum Producers's stockholders expect it to maintain its long-run dividend payout ratio of 25% of earnings. If the firm wants to maintain its current capital structure of 60% debt and 40% equity, the maximum capital budget it can support with this year's expected net income is If Red Bison Petroleum Producers Company reduces the amount of its forecasted capital budget, how will this affect the firm's annual dividend, assuming that all other factors are held constant? The amount that Red Bison Petroleum Producers will pay out in dividends this year will decrease. The amount that Red Bison Petroleum Producers will pay out in dividends this year will increase. What kind of company is most likely to follow a strict residual distribution policy? All companies A firm whose investment needs change often A firm whose earnings are cyclical and follow the economy O A firm with stable, predictable earnings and investment If you were to graph a firm's earnings, cash flows, and dividends over the past 20 years, which would you expect to be the most stable over time? Earnings O Cash flow Dividends