Residual dividend policy Clear View Ltd predicts that earnings in the coming year will be $ 10 million. There are 10 million shares outstanding, and clear maintains a total debt ratio of 0.50. A. Calculate the increase in total value if all the earnings are invested and the total debt ratio is maintained. What is the resultant increase in borrowing? B. Suppose Clear view uses a residual dividend policy. Planned capital expenditures total $12 million. Based on this information, what will the dividend per share amount be? C. In part (b), how much borrowing will take place? What are retained earnings? D. Suppose Clear plans no capital outlays for the coming year. What will the dividend be under a residual policy? What would new borrowing be? Dividend policy If increases in dividends tend to be followed by 9immediate0 increases in share prices, how can it be said that dividend policy in irrelevant? Changes in dividends Last month, Medical Madness Company, which had been having