Mississippi Inc. expects to have a capital budget of $800,000 next year. The company wants to maintain a target capital structure with 55% debt and 45% equity, and its forecasted net income is $400,000. If the company follows the residual dividend policy, how much in dividends, if any, will it pay? Question 26Answer a. $80,000 b. $120,000 c. $40,000 d. none Jump to