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Section B 22. (a) Farside Corporation follows a strict residual dividend policy. Its optmal capital structure is 75% debt 25% equity (ie the D/E ratio-3),Farside's

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Section B 22. (a) Farside Corporation follows a strict residual dividend policy. Its optmal capital structure is 75% debt 25% equity (ie the D/E ratio-3),Farside's year$150,000. If Farside's capital budget for the coming year is $750,000, will it pay a dividend? If so, how much? What is the maximum amount of capital spending possible with no new equity issued (i.e. using internal funding only)? ear ings for the e far tha vear iust ended. Contrarian declared dividends totaling S10.5

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