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In 2020, your firms sales were $1,500,000, its net income was $400,000, and the dividend payment was $200,000. You believe that sales will increase by
In 2020, your firms sales were $1,500,000, its net income was $400,000, and the dividend payment was $200,000. You believe that sales will increase by 7%, from 2020 to 2021. Assume that your firm uses the same dividend payout ratio in 2021. Using the percent-of-sale forecasting technique, how much is the firm expected to pay in dividends in 2021?
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$214,000.75
$214,026.75
$200,015.75
$200,014.75
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