Question: Question 10) ABC plc's current share price is 4. The current payout policy is that the firm has been paying a dividend of 0.20 per

Question 10) ABC plc's current share price is 4. The current payout policy is that the firm has been paying a dividend of 0.20 per share for 15 years. The firm would like to keep next 2 years' dividends to invest in a new operation. The project cash flow will begin in year 3, which allows the company to pay an increased dividend of 0.40 per share from that year onwards. What is the increase in wealth for the shareholders? a) E2.44 b) 3.26 c) 2.98 d) 1.55

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