Question
A corporation has an optimal capital structure of 40 per cent debt and 60 percent equity.The 2014 investment opportunity schedule totals $4,200,000.If the 2014 retained
A corporation has an optimal capital structure of 40 per cent debt and 60 percent equity.The 2014 investment opportunity schedule totals $4,200,000.If the 2014 retained earnings are $3 million and the firm follows the residual theory of dividends, it would pay ____ in dividends.
A.$3,000,000
b. $480,000
c. $1,500,000
d. $520,000
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Personal Finance Building Your Future
Authors: Robert B. Walker, Kristy P. Walker
1st edition
9780077861728, 978-0073530659
