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Petersen Company has a capital budget of $ 1.2 million. You want to keep an optimal capital structure with 60% debt and 40% social capital.
Petersen Company has a capital budget of $ 1.2 million. You want to keep an optimal capital structure with 60% debt and 40% social capital. According to its forecasts, the net income of the current year will be $ 600,000. What will be your rationale if you apply a residual distribution model and if you pay all distributions with dividends?
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