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Silver Company needs $1,000,000 in order to buy a new equipment for its business. Silvers net income is $950,000. Their target capital structure is D/E=1/3.

Silver Company needs $1,000,000 in order to buy a new equipment for its business. Silvers net income is $950,000. Their target capital structure is D/E=1/3. How much Silver can pay out as dividends?

Select one:

a. $220,000

b. $200,000

c. $210,000

d. $230,000

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