Question
Refer to the above financial statements of Vantech Ltd. Vantech follows a residual dividend policy and therefore wants to maintain its current debt to equlty
Refer to the above financial statements of Vantech Ltd. Vantech follows a residual dividend policy and therefore wants to maintain its current debt to equlty ratio. The company has $10 million in new capital projects for the current year . Based on Vantech's 2019 net income any other required information which is contained on Vantech's financial statements , calculate : a) The dividend per share Vantech will be able to pay out this year . (4 Marks ) How much additional debt , if any , will Vantech have to take on to finance these new capital projects ? (2 Marks ) ) Assume Vantech wishes to maintain the same dividend per share as paid out in 2019 , the same capital structure and does not wish to issue new shares . Calculate total available for capital projects next year ? 4 Marks )
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