What are the two dividend policy alternatives faced by Clinton Enterprises as described in the chapter?

The two dividend policy alternatives faced by Clinton Enterprises are: (1) paying a cash dividend of $35 million immediately and an additional $135 million at the end of the year, or (2) paying a cash dividend of $52.5 million immediately by raising $17.5 million through issuing new shares, and then distributing the remaining cash flow at the end of the year.

Clinton Enterprises has two options for its dividend policy. The first alternative involves distributing its available cash of $35 million now and an expected $135 million in one year, totaling $170 million in dividends over the two years. The second alternative allows the company to pay out more than it has on hand by distributing $52.5 million immediately, which requires raising $17.5 million through issuing new shares, and then paying out the remaining cash flow at the end of the year. Both alternatives ultimately yield the same value for the company's equity, demonstrating the irrelevance of the timing and amount of dividend payments under certain conditions.