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In 2015, the Keenan Company paid dividends totaling $3,810,000on net income of $20 million. Note that 2015 was a normal year andthat for the past 10 years, earnings have grown at a constant rateof 4%. However, in 2016, earnings are expected to jump to $32million and the firm expects to have profitable investmentopportunities of $14.6 million. It is predicted that Keenan willnot be able to maintain the 2016 level of earnings growth becausethe high 2016 earnings level is attributable to an exceptionallyprofitable new product line introduced that year. After 2016, thecompany will return to its previous 4% growth rate. Keenan's targetcapital structure is 40% debt and 60% equity.Calculate Keenan's total dividends for 2016 assuming that itfollows each of the following policies: (Write out your answerscompletely. For example, 25 million should be entered as25,000,000.)Its 2016 dividend payment is set to force dividends to grow atthe long-run growth rate in earnings. Round your answer to thenearest cent.$It continues the 2015 dividend payout ratio. Round your answerto the nearest cent. Do not round intermediate calculations.$It uses a pure residual dividend policy (40% of the $14.6million investment is financed with debt and 60% with commonequity). Round your answer to the nearest cent.$It employs a regular-dividend-plus-extras policy, with theregular dividend being based on the long-run growth rate and theextra dividend being set according to the residual dividend policy.Round your answer to the nearest cent.Regular-dividendExtra dividendAssume that investors expect Keenan to pay total dividends of$9,000,000 in 2016 and to have the dividend grow at 4% after 2016.The stock's total market value is $180 million. What is thecompany's cost of equity? Round your answer to two decimalplaces.%What is Keenan's long-run average return on equity? [Hint: g =Retention rate x ROE = (1.0 - Payout rate)(ROE).] Do not roundintermediate calculations. Round your answer to two decimalplaces.%