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.$4.55
- C.$2.25
- D.$5.00
- E.$1.25
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
