XYZ Berhad a manufacturer of tiles has forecasted its investment opportunities over the next four years....

 

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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. " 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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To calculate the dividend per share for each year using the residual dividend policy we need to dete... View the full answer