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Assume that a firm adheres to the residual dividend policy. It has a debt/equity ratio of 2:1, a net income of $3 million and it
Assume that a firm adheres to the residual dividend policy. It has a debt/equity ratio of 2:1, a net income of $3 million and it needs $6 million for new capital projects. How much will it pay out in dividends? Select one: a. $3 Million b. $2 Million C. $1 Million d. It will not pay any dividends
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Personal Finance
Authors: Elizabeth B. Goldsmith
1st Edition
0534544959, 9780534544959
