How do firms use long-run planning models to help set dividend policy? Which are more critical to the dividend decision, earnings or cash flow? Explain.

Explain the logic of the residual dividend model, the steps a firm
would take to implement it, and why it is more likely to be used to
establish a long-run payout target than to set the actual year-by-year
payout ratio.
How do firms use long-run planning models to help set dividend
policy?
Which are more critical to the dividend decision, earnings or cash
flow? Explain.
Explain the procedures used to actually pay the dividend.
Why is the ex-dividend date important to investors?
A firm has a capital budget of $30 million, net income of $35 million,
and a target capital structure of 45 percent debt and 55 percent
equity. If the residual dividend policy were used, what would its
dividend payout ratio be?