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. $5.00
- B. $1.25
- C. $3.50
- D. $4.55
- E. $2.25
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Financial Management Theory And Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
10th Edition
0030329922, 9780030329920
