White Berhad had total earnings last year of RM6,000,000, but expects total earnings to increase to RM6,500,000 this year because of the launching of new models. There are currently 1,000,000 shares of common stock outstanding. The company has RM4,000,000 worth of investments to undertake this year. The company finances 30% of its investments with debt and 70% with equity capital. The company paid RM3.80 per share in dividends last year.

Required:

1. If the company follows a pure residual dividend policy, how large a dividend will each shareholder receive this year?
2. If the company maintains a constant dividend payout ratio each year, how large a dividend will each shareholder receive this year?