=+6* (Examination level) Tesford ple has estimated net cash flows from operations (after interest and taxation) for the next five years as follows:

The cash flows have been calculated before the deduction of additional investment in fixed capital and working capital. This amounts to £2m in each of the first two years and £3m for each year thereafter. The firm currently has a cash balance of £500,000 which it intends to maintain to cope with unexpected events. There are 24 million shares in issue. The directors are committed to shareholder wealth maximisation.
Required a Calculate the annual cash flows available for dividend payments and the dividend per share if the residual dividend policy was strictly adhered to.