in 2007pxox ltd earned a net profit of 45000000


In 2007,PXox Ltd earned a net profit of 45,000,000 yuan and paid a cash dividend of 16,200,000 yuan. In 2008, its net profit is 52,000,000 yuan. In 2009, PXox will need to finance 60,000,000 yuan for the investment in fixed assets. Proposals for distributing of 2008 profits are:

(1) Maintain the dividend payout ration of 2007

(2) Borrow 45% of the capital needed in 2009 and obtain the remainder from the net profit of 2008. The residual of the net profit earned in 2008 is to be paid out as dividend.

(3) Borrow 40% of the capital needed in 2009, obtain 30% through the additional shares issues and the remaining 30% from the net profit of 2008.In addition, the stock dividend of 20,000,000 yuan is to be paid from 2008 profit. The residual is to be paid out as a cash dividend.

Calculate the cash dividend to be paid in 2008 under each of the three proposals

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Corporate Finance: in 2007pxox ltd earned a net profit of 45000000
Reference No:- TGS0500559

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