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3 . Redone Corporation has RM 3 0 million expansion in net assets during the coming year. Based on the debt asset ratio of 4

3. Redone Corporation has RM30 million expansion in net assets during the coming year. Based on the debt asset ratio of 40%(considered to be optimal), earnings after taxes of RM60 million, and a dividend payout policy of 80%, you need to assist the company on how much external equity must the company seek. Discuss why do dividend policy and external financing can affect the financial structure of business organisations.

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