Question
XYZ Berhad a manufacturer of tiles has forecasted its investment opportunities over the next four years. The company maintains a 40:60 debt-to-equity mix, which
XYZ Berhad a manufacturer of tiles has forecasted its investment opportunities over the next four years. The company maintains a 40:60 debt-to-equity mix, which the management accepts to be an optimal capital structure for firms within the industry. At present the outstanding common stocks amounts to 2 million units. The total cost of each year's investment and the earnings available for that year are as follows: Cost of Earnings Year Investment (RM) (RM) 1 3,000,000 4,000,000 2 4,000,000 4,500,000 3 4,500,000 4,000,000 4 5,000,000 3,000,000 Calculate the dividend per share for each year assuming the firm applies the residual dividend policy. "
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Corporate Finance Core Principles and Applications
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford
3rd edition
978-0077971304, 77971302, 978-0073530680, 73530689, 978-0071221160, 71221166, 978-0077905200
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