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A firm plans a capital budget of $3,250,000 next year with net income expected to be $2,500,000. The company wants to maintain a target capital
A firm plans a capital budget of $3,250,000 next year with net income expected to be $2,500,000. The company wants to maintain a target capital structure of 40% debt and 60% equity. If the company follows the residual dividend policy, how much in dividends, if any, will it pay? Select one: a. $550 b. $1,950 c. $3,250 d. $1,300 e. Zero \$
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