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Practice problem 5. I would really apreciate the help, I will give a review if the question is answered with an explination. Thank you. AT&T
Practice problem 5. I would really apreciate the help, I will give a review if the question is answered with an explination. Thank you.
AT\&T may be forced to cut its dividend so it is carefully bidding on projects which are profitable. It is currently evaluating 3 projects and AT\&T can spend $6 million on each project (for a total of $18 million) if it is profitable. Its 3 projects are: If the optimal capital structure is 60% equity financing and net income is projected to be $9.75 million, calculate the dividend payout ratio for AT\&T
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