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Question 2 Feed Berhad has found three acceptable investment opportunities. The three projects require a total of RM4 million in financing. It is the company's

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Question 2 Feed Berhad has found three acceptable investment opportunities. The three projects require a total of RM4 million in financing. It is the company's policy to finance its investments by using 25% debt and 75% common equity. The firm has generated RM6 million dollars from its operations that could be used to finance the common equity portion of its investments. Total earnings last year were 5 million and there are currently 1,000,000 shares of common stock. The company paid RM3.20 per share in dividends last year. a) What portion of the new investments will be financed by common equity and what portion by debt? b) If the company follows a pure residual dividend policy, how large a dividend will each shareholder receive this year? c) If the company maintains a constant dividend payout ratio each year, how large a dividend will each shareholder receive this year? d) If the company follows a constant dollar dividend policy, how large a dividend will each shareholder receive this year

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