Question
Pete & Co. has a capital budget of $3,000,000. The company wants to maintain a target capital structure that is 75% equity and 25% debt.
Pete & Co. has a capital budget of $3,000,000. The company wants to maintain a target capital structure that is 75% equity and 25% debt. The company forecasts that its net income this year will be $3,250,000. If the company follows a residual dividend policy, and it has 200,000 shares outstanding what will be its cash dividend per share?
- A.$3.50
- B.$2.25
- C.$5.00
- D.$1.25
- E.$4.55
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Contemporary Engineering Economics
Authors: Chan S. Park
5th edition
136118488, 978-8120342095, 8120342097, 978-0136118480
