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Elora ltd has prepared their capital budgeting plan for 40% debt and 60% equity capital arrangement with $ 1000000.00. Their forecasted net income is $

Elora ltd has prepared their capital budgeting plan for 40% debt and 60% equity capital arrangement with $ 1000000.00. Their forecasted net income is $ 700000.00. How much of the $700000.00 should the company pay out as dividend? How would the dividend affected if net income fall to $450000.00?

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