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Excel based Work. OUESTION-4-5 Marks ABC Corporation is a publicly-traded company with a net profit of INR 10,00,000 for the fiscal year. The company's management
Excel based Work.
OUESTION-4-5 Marks ABC Corporation is a publicly-traded company with a net profit of INR 10,00,000 for the fiscal year. The company's management is deliberating on its dividend policy. The shareholders are expecting a dividend payout ratio of 40%. The company has 200,000 shares outstanding. Additionally, the company needs to retain INR 2,00,000 for future expansion projects. a) Calculate the total amount available for dividends. b) Determine the per-share dividend amount if the company chooses to distribute all the available funds among its shareholders. c) If the company decides to retain INR 2,00,000 for future projects, calculate the total dividend amount that will be paid to shareholders and the new dividend payout ratioStep by Step Solution
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