Reference no: EM132061034

The following information is available about A ltd a company manufacturing blades. profit after tax for current financial year R25 million, Growth in cash reserves R28.5 million. They are considering a new capital project of 30 million. this project will be funded R15 million in cash and R15 million by way of a long term loan fixed at 12% per annum. The current share price is 800 cents per share, trading at twice the net asset value. Adividends of 30 cents per share was paid the previous year. There 16 million shares in issue and have been that for that number for the last three years. show the impact of the following three dividend options per share and on the balance sheet 1) Growing the previous years dividends by 15% 2) Applying the dividend cover of 43) issuing a script dividend on a 1 for 20 basis assuming all shareholders accepted offer.