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QUESTION 5 A company's projected capital budget is $800,000, its target capital structure is 50% debt and 50% equity, and its forecasted net income is

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QUESTION 5 A company's projected capital budget is $800,000, its target capital structure is 50% debt and 50% equity, and its forecasted net income is $700,000. If the company follows a residual dividend policy, what total dividends, if any, will it pay out and what is the payout ratio? 150 171 A company is considering a project with the following cash flows Initial Investment = $200,000 Cash FlowsYear 1 = $140,000 Year 4 = $80,000 Year 5 = $120,000 If the appropriate discount rate is 12%, what is the NPV of this project

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