Question $2-$Show your workings.

Hard Steel Sdn$.$ Bhd$.($HSSB$)$ is forecasting an EBIT of RM$3,000,000$ for the upcoming year. The company's capital structure comprises $40\%$ debt and $60\%$ equity, and its marginal tax rate is $40\%.$ The company pays an $8\%$ interest rate on its RM$400,000$ long$-$term debt. Additionally, there are $1\mathrm{.}5$ million shares of common stock outstanding. In the upcoming capital budgeting cycle, the expected cost will be RM$2,200,000.$

Assuming the company follows a residual dividend policy you are required to answer the following.

a$.$ Determine the expected dividend payout ratio.$(16$ Marks$)$

b$.$ Determine the expected dividend per share.$(2$ Marks$)$

c$.$ Compute the retention ratio.$(2$ Marks$)$

d$.$ If the HSSB expects an increase in earnings of $30\%,$ how much would be the dividend per share?$(5$ Marks$)$

$($Total: $25$ Marks$)$