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Getler Inc.'s projected capital budget is $2,000,000, its target capital structure is 40% debt and 60% equity, and its forecasted net income is $975,000. If
Getler Inc.'s projected capital budget is $2,000,000, its target capital structure is 40% debt and 60% equity, and its forecasted net income is $975,000. If the company follows a residual dividend policy, how much dividends will it pay or, alternatively, how much new stock must it issue? Select the correct answer. O a. Dividends $218 Stock issued $225,218 O b. Dividends $437 Stock issued $225,437 O c. Dividends $109 Stock issued $225,109 O d. Dividends $328 Stock issued $225,328 O e. Dividends $0 Stock issued $225,000 Getler Inc.'s projected capital budget is $2,000,000, its target capital structure is 40% debt and 60% equity, and its forecasted net income is $975,000. If the company follows a residual dividend policy, how much dividends will it pay or, alternatively, how much new stock must it issue? Select the correct answer. O a. Dividends $218 Stock issued $225,218 O b. Dividends $437 Stock issued $225,437 O c. Dividends $109 Stock issued $225,109 O d. Dividends $328 Stock issued $225,328 O e. Dividends $0 Stock issued $225,000
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