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Suppose XYZ Corp has a planned investment (that is, capital budget) of $3 million. Its optimal capital structure calls for a debt ratio of 50 percent. Based on the residual dividend policy, how much dividends should be paid out? Please refer to your handout for an example. $1,500,000 $1,323,000 $0 $950,000 QUESTION 19 Which dividend policy argues that firms attract the type of investors who prefer their dividend policy? Dividend irrelevance theory Signaling hypothesis Stable predictable dividend Clientele effect QUESTION 20 A firm has 2 million shares outstanding. The stock sells for $40 per share. After a 4-to-1 stock split, what should be the total value of the stock? $80,000,000 $20,000,000 $40,000,000 None of the above QUESTION 21 A firm declares a 15% stock dividend. Before the declaration, number of shares outstanding was 2,000 and price per share was $10. Calculate stock price after the stock dividend. $8.70 $10.00 $2,300 $7.55