Q11. A company expects to generate the following net income and incur the following capex in the next five years: Rs. Lakhs Year 1 2 3 4 5 Net Profit 75 80 85 90 100 Capex 40 45 50 50 60 The total number of outstanding shares are 10,00,000 and the current dividend is Rs.4.50 per share. QUESTIONS : ( 15 MARKS) Determine the dividend if the firm follows a pure residual dividend policy a. Determine the external financing needed if the current dividend is maintained b. Determine the external financing required if the company maintains a 50% dividend pay-out ratio c. Under which of the above is the external requirement of funds maximized? d. Which method of dividend payment do you advocate for this firm