Several factors affect a firm's ability to pay a dividend. Three such factors are described in the tables profitability (an increase in net income). investment opportunities, and capital structure (an increase in the debe ratio). Use the table to indicate how a firmis ability to pay a dividend is affected by the factors described. (Hint: Consider each factor ix isolation, with everything else held the same.) Stay Swift Corp. is a bypical company that is very concerned with meeting investors' expectations and kecping investors happy. Its earnings tend to fiuctuate from year to year because of the nature of the business the company is in. Which of these statements most likely describes Stay Switt Corpis drvidend policy? Stay Switt Corp. will be willing to increase its dividend only if it believes that it will be able to maintain the dividend increase in future years. Stay Swift Corp. will increase its drvidends in years when it has high earnings so that it can distnbute excess free cash fiows to investors. even it it means that the firm wil have to reduce its dividend in subsequent years