in$.($TK$)$ m$.$

Conypany has decuhed thal its capllat brulgel dirng the coming year will be $$25$ uillien ths

eppimal $,$ whital structure is $70$ percont equity aod $3)$ percent debt. Ifs camines betore urerest

and taxes $($EBIT$)$ are projeuted tu be $$42$ million tor the year The cermpany has $$200$ miltion:

Requilifa:

Atcrmine the dividend patyout raltiy,

$($hi marks$)$

Gonsidering a change th thritend poilicy.

$(4$ minks$)$