Q18

Brooks Corp.'s projected capital budget is $2,000,000, its target capital structure is 60% debt and 40% equity, and its forecasted net income is $600,000. If the company follows a residual dividend policy, what total dividends, if any, will it pay out?

Select one:

a. $0

b. $240,000

c. $205,770

d. $216,600

e. $228,000