The T-Company has estimated the following net income and capital expenditures for the coming (next) 5 years (all figures are in thousands):

Year	1	2	3	4	5
Net income (in thousands)	2000	1500	2500	2300	1800
Capital Expenditures (in thousands)	1000	1500	2000	1500	2000

The company currently pays Re.1 per share as dividend, and has 1 million shares of common stock outstanding. Please note that first the income is received in any particular year, from which capital expenditure for that year is done and the dividends for that year are paid.

(a.) What is the dividend per share and the external financing required in each year if residual earnings after expenditure are paid as dividends.

(b.) What is the dividend per share and the external financing required in each year if the current dividend per share is maintained.

(c.) What is the dividend per share and the external financing required in each year if a dividend payout ratio of 50% is maintained.

(d.) Which of the above two policies result in higher aggregate dividends? Which of the above two policies result in minimum total external financing requirement?