Davis Inc. expects to have net income of $8,000,000 during the next year. Plato's target capital structure
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Davis Inc. expects to have net income of $8,000,000 during the next year. Plato's target capital structure is 50% debt and 50% equity. The company has determined that the optimal capital budget for the coming year is $6,000,000. If Davis follows a residual distribution policy (with all distributions in the form of dividends) to determine the coming year's dividend, then what is Davis's dividend payments? _____ |
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