Several factors affect a firm's ability to pay a dividend. Three such factors are described in the table: profitability (an increase in net income), investment opportunities, and capital structure (a increase in the debt ratio). Use the table to indicate how a firm's ability to pay a dividend is affected by the factors described. Primatech Goods Corp. is a typical company that is very concerned with meeting investors' expectations and keeping investors happy. Its earnings tend to fluctuate from year to year because of the nature of the business the company is in. Which of these statements most likely describes Primatech Goods Corp.'s dividend policy? Primatech Goods Corp. will use a residual dividend policy because it will increase the firm's r_s and increase the value of the firm. Primatech Goods Corp. will pay a stable, predictable dividend because it will lower the firm's r_s and increase the value of the firm