$1.$ Nova Corp. estimates that the earnings next year will be $$50$ million. There are $20$

million outstanding shares, and the company maintains a debt$-$to$-$equity ratio of $1\mathrm{.}5.$

The company follows a residual dividend policy and plans to spend $$70$ million on

capital expenditure. What will the dividend per share be next year? How much

borrowing will take place if the company wants to maintain its capital structure? $(5$

points$)$