Red Bison Petroleum Producers Inc. is expected to generate $140,000,000 in net income over the next year. Red Bison Petroleum Producers has forecasted a capital budget of $86,000,000, and it wishes to maintain its current capital structure of 70% debt and 30% equity. If the company follows a strict residual distribution policy and makes distributions in the form of dividends, what is its expected dividend p for this year? 89.73% 73.41% 85.65% 81.57% If Red Bison Petroleum Producers increases its debt ratio, then its dividend payout ratio will constant. assuming that all other facto decrease Most firms have earnings that vary considerably from year to year and do not grow at a reli increase t pace. Furthermore, their require may change often. Does this mean that the residual distribution policy approach can't be of any help to most firms? Yes No Gaven Industries, which is in the same sector as Red Bison Petroleum Producers, exhibits very stable and predictable earnings, but its ca investments tend to be lumpy. This means that Gaven's required capital investment spending is usually relatively low, but every few year sizable expenditures will cause the firm's capital budget to be quite large. Should Gaven Industries be following a strict residual distributi No Yes