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TBC has two investment opportunities, A & B. A needs an initial cash outlay of$18 million...

TBC has two investment opportunities, A & B. A needs an initial cash outlay of$18 million and its internal rate of return is 20%. B needs $12 million and its internal rate of return is 10%. A is indivisible.B is also indivisble. The cost of capital is 16%. The debt/assets ratio is 40%, which is also the target ratio. This year TBC's net income is $25 million. how much dividend should be declared this year if TBC follows a residual dividend policy

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