i want an answer to all 4 questions (this problem is different than the one posted on chefg becore same given but different questions maybe)

Welsh Company is small but rapidly growing biotechnology company with annual revenues of $115 million. Last year's net income was $6.38 million. The company which was founded by two brothers went public in 2015. By issuing 2.8 million shares at $19, $53.2 million of equity were raised. Two years later, Welsh Company made its first annual dividend payment of $0.40 which increased by 15% the following year. Recently, due to increase in the sales of a newly developed drug, the company's last quarter earnings are up 37% compared to the previous quarter. The two founders are optimistic about the company's future and they feel it is time to reward its shareholders with either a special one-time dividend of $2.5 or an increase in the annual dividend of $1. The company's Chief Finance Officer, has another suggestion which is using half of the accumulated cash of $12 million to initiate a buy-back. Due to the global financial crisis, the company's shares dropped significantly and are currently trading at $17.50, down 32% from the peak price. Additionally, the CFO would like to reduce the company's debt by $4 million, thereby maintaining a cash reserve of only $2 million. 1) Do you think it was prudent to initiate annual dividend payments only three years after the IPO? 2) If a special one-time dividend was paid, how would it likely affect the company's share price? 3) Would the share price reaction be different if the annual dividend was raised by $1 instead? 4) What is the current dividend payout ratio and how would it change if the annual dividend was raised by $12 ffont the comnany's P/F ratin RA and ROE