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5 . 2 Assuming that the company remained with the residual dividend policy for now, how much would shareholders receive per each share for the
Assuming that the company remained with the residual dividend policy for now, how much would shareholders receive per each share for the financial year ended March
Read the scenario below and answer the questions that follow.
A company is under pressure from influential shareholders to change its dividend policy. The company has always followed the residual dividend policy, but the influential shareholders feel that the company needs to change to a stable payout ratio policy. The company just reported earnings of for the year ended March The company is considering the following investment opportunities for the upcoming financial year:
tabletableInvestmentopportunityCost,Internal rate of returnARm
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