Residual dividend policy) FarmCo, Inc follows a policy of paying out cash dividends equal to the residual amount that remains after funding 30 percent of its planned capital expenditures. The firm tries to maintain a 30 percent debt and 70 percent equity capital structure and does not plan on issuing more stock in the coming year. Farm Co's CFO has estimated that the firm will earn S14 million in the current year. a. If the firm maintains its target financing mix and does not issue any equity next year, what is the most it could spend on capital expenditures next year given its earnings estimate? b. If Farmco's capital budget for next year is $10 million, how much will the firm pay in dividends and what is the resulting dividend payout percentage? a. It the nirm maintains its target nnancing mix and ooes not issue any equity next year, what is the most it couid spena on capital expenditures next year given its earnings estimate? million (Round to two decimal places) b. If FarmCo's capital budget for next year is $10 million, how much will the firm pay in dividends? milion (Round to one decimal place) What is the resuiting dividend payout percentage? (D) Time Remaining: 0053:13