The Hasting 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. The Hasting 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 1: net income $18million, Profitable Capital Expenditure $7 million Year 2 : net income 16 million profitable capital expenditure 12 million Year 3: net income 11 million profitable capital expenditure 6 million Year 4: net income 22 million profitable capital expenditure 7 million Year 5: net income 20 million profitable capital expenditure 8 million The Hastings corporation has 12 million shares outstanding.   a. If the marginal principle of retain earnings is applied, how much in total cash dividends will be paid over five years? If the firm pays a 20% stock dividend in years two through five and also pays a cast event of $3.40 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% of the net income in the firm will pay a 20% stock dividends in the years two through five how much will dividends per share for each year be? Assume the cash dividends paid after the stock dividend

The Hasting 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.

The Hasting 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 1: net income $18million, Profitable Capital Expenditure $7 million

Year 2 : net income 16 million profitable capital expenditure 12 million

Year 3: net income 11 million profitable capital expenditure 6 million

Year 4: net income 22 million profitable capital expenditure 7 million

Year 5: net income 20 million profitable capital expenditure 8 million

The Hastings corporation has 12 million shares outstanding.

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

If the firm pays a 20% stock dividend in years two through five and also pays a cast event of $3.40 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% of the net income in the firm will pay a 20% stock dividends in the years two through five how much will dividends per share for each year be? Assume the cash dividends paid after the stock dividend

If the firm simply uses a payout ratio of 40% of net income how much in total cash dividends will be paid? 3.5 million?