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Wells manufacturing Co Ltd has projected its investment opportunities over a five year planning horizon. The cost of each year's investment and the amount of

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Wells manufacturing Co Ltd has projected its investment opportunities over a five year planning horizon. The cost of each year's investment and the amount of internal funds available for reinvestment for that year are given below. The firm's debt-equity ratio is 66.7. There are currently 125,000 shares.

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What would he the dividend each year it the residual dividend theory were Used in Year - to- VERT basis ?" 17 . what target stable dividend can Wells establish by using the long term residual dividend theory Over the future planning horizon" Why might a residual dividend policy applied to the five years as opposed to individual years be preferable " ?" Internal Funds Available for Heinvestment or for Dividends Year Cost of Investment 5. 275, 20 0

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