QUESTION 4 (25) Nexcare (Ltd) operate a number of car washes and auto valet services. The company has experienced a reasonable trading year. They are deciding whether to pay out R248 000 in accumulated cash in the form of dividend to shareholders or embark on a share repurchase campaign. Current earnings are R7,20 per share and the share sells for R80. Their abbreviated balance sheet before paying out the dividend is as follows: Assets Equity and Liabilities Tangible assets 400 000 Equity 620 000 Inventories 40 000 Debt 180 000 60 000 Receivables Bank/cash Total 300 000 800 000 Total 800 000 Required: 4.1. Calculate the number of shares in issue if the company where to pay the dividend. (2) 4.2. Calculate the number of shares in issue if the company were to repurchase its shares (3) 4.3. Spanking clean (Ltd) is deciding whether to pay out cash dividend or not. Discuss the option of dividend reinvestment plans and outline the benefits to the company and its shareholders. (6)