Roads Ltd is a construction company that builds roads and related civil projects. The company recently faced increased calls from investors to pay dividends due to the perceived lack of new profitable projects in a low growth economy. The company has, in spite of weak business sentiment, maintained a stable profit margin. At a recent meeting, the board resolved to adopt a residual approach to dividend payments. You have been tasked with recommending the dividend that should be paid at the end of the 2023 financial year.

The company expects to have earnings available to common shareholders of R 60 million and it will have five million shares in issue at the end of the financial year. Its project schedule for the next financial year is as follows:

Project	A	B	C	D
IRR	18%	15%	14%	11%
Cost (Rm)	20	15	21	16

The company has a WACC of 12%.

Required:

What amount of capital would the company require in the coming year?

a. R35 million

b. R42 million

c. R56 million

d. R72 million