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This year Tagliatelle Berhad expected total earnings of RM8,000,000 due to an aggressive promotion. Last year, the company reported total earnings of RM7,500,000. Currently the company has 1,000,000 shares of common stock outstanding. Tagliatelle Berhad has RM4,000,000 worth of investments to undertake this year. The company finances 40 percent of its investments with debt and 60 percent with equity. Dividend paid last year was RM4.00 per share. Required: a) Calculate the portion of the new investments that will be financed by: i. equity ii. debt (2 Marks) b) According to the residual dividend theory, how large dividend per share will each shareholder receive this year? (4 Marks) c) If the company maintains a constant dividend payout ratio each year, how large dividend per share will each shareholder receive this year? (4 Marks)