Summerland Corporation follows a strict residual dividend policy. Its debt-equity ratio is 1.5.

a.	If earnings for the year are $145,000, what is the maximum amount of capital spending possible with no new equity?

Maximum capital outlay

?$

b-1.

If planned investment outlays for the coming year are $790,000, will Summerland pay a dividend?

	Yes or no?

b-2.	If so, how much? (Leave no cells blank - be certain to enter "0" wherever required.)

Dividend paid

?$

c.

Does Summerland maintain a constant dividend payout?

Yes or no?