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Question : Rohter Galeano Inc. is considering how to set its dividend policy. It has a capital budget of $4,000,000. The company wants to maintain

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Rohter Galeano Inc. is considering how to set its dividend policy. It has a capital budget of $4,000,000. The company wants to maintain a target capital structure that is 12% debt. The company forecasts that its net income this year will be $6,500,000. If the company follows a residual dividend policy, what will be its total dividend payment?

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