Hope plc has made a profit over the past years of 120,000, its gearing ration is 0.4 and costs of capital are:
Equity 22% Per annum
Retained earnings 20% Per annum
Debt 10% Per annum
Four projects are under construction and particulars are follows:
Project Investment Required Internal Rate of Return
A 60,000 19%
B 50,000 18%
C 80,000 17%
D 20,000 16%
What Dividend should be Paid