Question 2 (1 point)

A company considers projects 1, 2 and 3 requiring initial capital outlays of $ 250,000, $ 300,000 and $ 450,000 respectively. The company finances its investments 45% by debt and the rest by equity. Profits for the year amount to $ 950,000. If the company has a residual dividend policy, determine the total amount paid in dividends to shareholders?

Question 2 options:

$ 550,000

$ 500,000

$ 950,000

$ 450,000

$ 400,000