-the company follows a residual dividend policy

-the total capital budget for next year is likely to be one of three amounts: 2 million, 3 million, or 4 million

-the forecasted level of potential retained earnings next year is 2 million

-the target or optimal capital structure is a debt ratio if 40%

Compute the amount of the dividend (or the amount of new common stock needed) and the dividend payout ratio for each of the three capital expenditure amounts