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A novel n-way rectangular power divider is presented, which has the capability of design for arbitrary power division among its output ports and arbitrary specification of impedances at all its terminal ports. Consequently, the impedance matching is also realised by its configuration. An accurate equivalent circuit is derived for the power divider, which is used to develop a design procedure by the method of least squares. Two prototype models, namely a three-way and a four-way dividers are fabricated and measured for different terminal impedances and power division ratios. The agreement among the results from the proposed design procedure, full-wave computer simulation and measurement is noteworthy.