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ABC Inc. keeps a target capital structure of 0.25 and adopts a residual dividend policy. The firm just knows that next year it will need
ABC Inc. keeps a target capital structure of 0.25 and adopts a residual dividend policy. The firm just knows that next year it will need $1,700 for new investments. The after-tax earnings this year are $2,700. What is the amount of dividends that shareholders can expect to receive this year? *A) $1,340 B) $1,360 C) $3,500 D) $6,500
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