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Alpha Graphics Press ( AGP ) uses the residual dividend approach to determine the company s dividend payments. They have a target debt - to

Alpha Graphics Press (AGP) uses the residual dividend approach to determine the companys dividend payments. They have a target debt-to-equity ratio of (1)/(2). Next year AGP plans a capital budget of $90 million and earnings of $80 million. How much will AGP pay in dividends next year? Show your work.

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