Question 31: reyes inc. follows a resdidual dividend policy and its capital structure policy requires maintaining a debt-to-value ratio of ?. The firm is considering the following independent investment projects, all of which are traditional projetcs

PROJECT	INITIAL INVESTMENT	IRR
A	$200,000	16%
B	$300,000	12%
C	$700,000	13%
D	$1,000,000	17%
E	$800,000	14%

The firms weighted average cost of capital is 15% and net income to stockholders generated over the past year and available for present investment, amounts to $1,000,000

1. What is the amount of dividends paid to shareholders over the past year?

a. $500,000

b. $300,000

c. $200,000

d. $100,000

e. $0