Crossroads Ltd is a civil construction company that builds roads and related civil projects. The company wishes to

pay dividends with the hope that its share price appreciated accordingly. The company has maintained a stable profit

margin and plans to raise capital in the coming year. At a recent meeting, the board resolved to adopt a residual

approach to dividend payments. You have been tasked with recommending the dividend that should be paid at the

end of the $2024$ financial year.

The company expects to have earnings available to common shareholders of $R70$ million and it will have four and a

half million $(4\mathrm{.}5$ million$)$ shares in issue at the end of the financial year.

The company now expects to undertake projects worth a total of R$50$ million in the coming year.

Required:

What dividend per share could the company pay out if it targets a debt ratio of $50\%?$

a$.$ R$4$

b$.$ R$10$

c$.$ R$15$

d$.$ R$20$In