Titan Petrochemicals has 500 million shares issued. The estimated cash flows for the next 6 years (after interest and taxes) are reported below. Based on the above cash flows, in order to maintain sustainable growth, the company has to reinvest some of the cash available in fixed assets and working capital. This requires RM 8 million per year for the first two years and RM 15 million per year thereafter. The balance sheet of the company currently shows a cash balance of RM 2 million as a cash buffer for further unexpected requirements. Investors highly regard this company as the managers firmly believe in shareholders wealth maximisation policy. a) Discuss market imperfections and other real-world factors which lead to investors favouring high level of dividends despite its tax disadvantages in markets such as the US. (8 marks) b) Determine the annual cash flows available for dividend payments and the dividend per share if the Board of Directors decide on a residual dividend policy. (7 marks) c) Suggest an alternative approach where a smooth dividend policy can be implemented instead of the residual dividend policy. Include the possibility of a special dividend payment or share repurchase