Question
BuffTech, Inc. has a capital budget of $1,500,000 and projects a net income of $550,000. The firm's target capital structure includes 65% debt. Assuming that
BuffTech, Inc. has a capital budget of $1,500,000 and projects a net income of $550,000. The firm's target capital structure includes 65% debt. Assuming that the firm follows the Residual Dividend Model, how much dividends, if any, should it pay out?
| $20,350 | ||
| $22,550 | ||
| $23,750 | ||
| The firm should not pay any dividends. | ||
| $25,000 |
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Recent Advances In Computational Finance
Authors: Nikolaos S. Thomaidis, Jr. Dash, Gordon H.
1st Edition
1626181233, 978-1626181236
