polar ltd predicts that profits in the coming year will be 32 million

_{polar ltd predicts that profits in the coming year will be 32 million. there are 8 million shares in issue and the company maintains a debt/equity ration 2.}

_{a) calcualate the maximum funds that will be available for investments without issuing new equity and the increase in borrowing that goes along withit?}

_{b) suppose the firm uses a residual dividend policy, and planned capital expenditures total million, what will the dividend per share amount be?}

_{c) in part of b) how much borrowing will take place?}

_{d) if the company plans no capital outlays for the coming year, what is the dividend payout ratio and the associated new borrowing?}