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Salsa Inc. estimates that the coming years earnings will be $75 million. There are 12 million shares outstanding and the target capital structure is 1.5:1.

Salsa Inc. estimates that the coming years earnings will be $75 million. There are 12 million shares outstanding and the target capital structure is 1.5:1. If the planned capital outlay is for $72 million, will Salsa Inc. be in a position to pay dividends as per the Residual Dividend Policy? If so, what will be the dividend per share?

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