# The Hastings Sugar Corporation has the following pattern of net income each year, and associated capital expenditure projects. The rm can earn a...

See attachments for questions A through D. Provide the breakdown of how to answer, please!

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 theprojects than the stockholders could earn if the funds were paid out in the form of dividends. Proﬁtable CapitalYear Net Income Expenditure1 $12 million $ 7 million2 15 million 12 million3 11 million 7 million4 15 million 7 million5 15 million 8 million I— The Hastings Corporation has 2 million shares outstanding (The following questions are separate from each other). a. If the marginal principle of retained earnings is applied, how much in total cash dividends will be paid over the five years? (Enter your answer in millions.) Total cash dividends I I million b. If the ﬁrm simply uses a payout ratio of 40 percent of net income, how much in total cash dividends will be paid? (Enter your answer in millions and round youranswer to 1 decimal place.) Total cash dividends -m c. If the ﬁrm pays a 10 percent stock dividend in years 2 through 5, and also pays a cash dividend of $2.40 per share for each of the ﬁve years, how much in totaldividends will be paid? Total cash dividends I I

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