(4)-The total amount to be paid out in dividends according to the residual dividend theory

Here, Weve Total investment required = $3,000,000

Firms net income = $2,200,000

Percentage proportion of Common equity = 65%

Total Dividend paid using the residual dividend policy is calculated as follows

Therefore, the Total Dividend paid = Net Income [Total Capital Budget x Equity Ratio]

= $2,200,000 [$3,000,000 x 65%] = $2,200,000 - $1,950,000 = $250,000

Hence, the total amount to be paid out in dividends according to the residual dividend theory will be $250,000

I Would need help for question (5) thanks!

Ernest T. Bass Frozen Frog Legs, Inc. has found three acceptable investment opportunities. The three projects require a total of $3 million in financing. It is the company's policy to finance its investments by using 35% debt and 65% common equity. The firm net income has been $2.2 million dollars that could be used to finance the common equity portion of its investments. 4. According to the residual dividend theory, how much would be paid out in dividends? (ILO 4- 1 point) 5. If the firm pays a total dividend of $1,000,000 and does not issue any equity, what is the most it could spend on capital expenditures given its earnings estimate? (ILO 3 -1 point) Ernest T. Bass Frozen Frog Legs, Inc. has found three acceptable investment opportunities. The three projects require a total of $3 million in financing. It is the company's policy to finance its investments by using 35% debt and 65% common equity. The firm net income has been $2.2 million dollars that could be used to finance the common equity portion of its investments. 4. According to the residual dividend theory, how much would be paid out in dividends? (ILO 4- 1 point) 5. If the firm pays a total dividend of $1,000,000 and does not issue any equity, what is the most it could spend on capital expenditures given its earnings estimate? (ILO 3 -1 point)