Cash shortfall by raising additional funds

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XYZ Inc. has no debt and it has 100 shares outstanding with a current share price of $10. It has been consistently paying $1 in dividend per share for the last 5 years and it is expected to continue this policy by paying a dividend of $1 shortly. However, the company feels that it needs the funds for investment in a new project so it is planning to make up the cash shortfall by raising additional funds.

Reference no: EM133291486

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