Reference no: EM131579542

Lenberg Lens Company believes in the dividends-as-a-residual philosophy of dividend policy. This year’s earnings are expected to total $11 million. A very conservative company, Lenberg is financed solely with common stock. The required rate of return on retained earnings is 14 percent, whereas the cost of newly raised capital is 17 percent because of issuance costs. Enter your answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to the nearest whole number. If Lenberg has $9 million of investment projects having expected returns greater than 14 percent, what total amount of dividends should Lenberg pay? Total dividend payment: $ million Additional financing required: $ million If Lenberg has $16 million of investment projects having expected returns greater than 17 percent, what total amount of dividends should Lenberg pay? Total dividend payment: $ million Additional financing required: $ million.