This year Karmen Kurtains expects its earnings to be $3 million and its capital budgeting needs to be $5 million. Last year, the company paid dividends equal to $2.5 million. During the past few years, Karmen has grown at a constant 3 percent rate, and this rate is expected to continue in the future. What will be Karmen's total dividends this year if it follow (a) a policy that requires dividends to grow at its long-run growth rate and (b) a pure residual dividend policy. Karmen's target debt/assets ratio is 30 percent.