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BB is a manufacturing company and has the following data; Projected capital budget $4,750 Target capital structure ???debt 60% ???equity 40% Estimated net income $2,000
| BB is a manufacturing company and has the following data; | |
| Projected capital budget | $4,750 |
| Target capital structure | |
| ???debt | 60% |
| ???equity | 40% |
| Estimated net income | $2,000 |
| Assume the company follows a residual dividend policy. | |
| Determine how much dividends will it pay. | |
| Determine how much new stock must it issue. |
| a- dividend = 0; new stock = 0 |
| b- dividend = 0; new stock = 100 |
| c- dividend = $100; new stock = 0 |
| d- dividend = $100; new stock = 100 |
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
15th edition
978-1118159644, 9781118562185, 1118159640, 1118147294, 978-1118147290
