BLUEBOX LIMITED has reported net income of R54 million for the 2020 financial year.

The company is considering the following divisible projects for the 2021 financial year:

PROJECT	A	B	C	D	E
COST RM	40.0	35.0	50.0	30.0	10.0
NPV RM	7	4.5	7.2	4.8	2.5
PI

BLUEBOX Limiteds cost of capital is 12.5%.

The company has a capital budget of R75m. Its target capital structure is a debt-to-equity ratio of 66.67%.

DETERMINE BLUEBOX TOTAL RAND DIVIDEND AND PAY OUT RATIO BY USING RESIDUAL DIVIDEND MODEL