The Hastings Sugar Corporation has the following pattern of net income each year, and associated capital expenditure projects. The firm can earn a higher return on the projects than the stockholders could earn if the funds were paid out in the form of dividends.

Year Net Income Profitable Capital Expenditure

$1$ $ $17$ million $ $8$ million

$220$ million $11$ million

$318$ million $7$ million

$414$ million $7$ million

$522$ million $9$ million

The Hastings Corporation has $2$ million shares outstanding. $($The following questions are separate from each other.$)$

If the marginal principle of retained earnings is applied, how much in total cash dividends will be paid over the five years?

Note: Enter your answer in millions.

If the firm simply uses a payout ratio of $20$ percent of net income, how much in total cash dividends will be paid?

Note: Enter your answer in millions and round your answer to $1$ decimal place.

If the firm pays a $20$ percent stock dividend in years $2$ through $5,$ and also pays a cash dividend of $$2\mathrm{.}40$ per share for each of the five years, how much in total dividends will be paid?

Assume the payout ratio in each year is to be $30$ percent of the net income and the firm will pay a $20$ percent stock dividend in years $2$ through $5,$ how much will dividends per share for each year be$?($Assume the cash dividend is paid after the stock dividend.$)$

Note: Round your answers to $2$ decimal places.b$.$ If the firm simply uses a payout ratio of $20$ percent of net income, how much in total

cash dividends will be paid?

Note: Enter your answer in millions and round your answer to $1$ decimal place.

Total cash dividends

million

c$.$ If the firm pays a $20$ percent stock dividend in years $2$ through $5,$ and also pays a cash

dividend of $$2\mathrm{.}40$ per share for each of the five years, how much in total dividends will

be paid?

Total cash dividends

d$.$ Assume the payout ratio in each year is to be $30$ percent of the net income and the firm

will pay a $20$ percent stock dividend in years $2$ through $5,$ how much will dividends per

share for each year be$?($Assume the cash dividend is paid after the stock dividend.$)$

Note: Round your answers to $2$ decimal places.

Dividends per

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