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a. TUCZZ Berhad makes net profit of RM5,000,000 from last year's operations. The company wishes to pay 60% of the income as the returns

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a. TUCZZ Berhad makes net profit of RM5,000,000 from last year's operations. The company wishes to pay 60% of the income as the returns to the shareholders. At present, the company's shares outstanding are 1,000,000 units with current market price of RM9 each. (Tips: DPS-Cash Available/NOSO) REQUIRED: i. Compute earnings per share (EPS) for both cash dividend and stock repurchase. (7 Marks) ii. Calculate the price earnings (PE) ratio for both cash dividend and stock repurchase. (9 Marks) b. Explain TWO (2) forms of dividend argument in dividend policy (4 Marks) (TOTAL: 20 MARKS)

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