The Hastings Sugar Corporation has the following pattern of netincome each year, and associated capital expenditure projects. Thefirm can earn a higher return on the projects than the stockholderscould earn if the funds were paid out in the form of dividends.
| Year | Net Income   | Profitable Capital
Expenditure |
| 1 | | $18 million | | | $ 7 million | |
| 2 | | 20 million | | | 12 million | |
| 3 | | 10 million | | | 7 million | |
| 4 | | 20 million | | | 8 million | |
| 5 | | 15 million | | | 8 million | |
|
The Hastings Corporation has 2 million shares outstanding (Thefollowing questions are separate from each other). Â
c. If the firm pays a 10 percent stock dividendin years 2 through 5, and also pays a cash dividend of $2.40 pershare for each of the five years, how much in total dividends willbe paid?
Total cash of dividends______
ANSWER IS NOT 29
