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The Halifax Corporation expects next years net income to be $15 million. The firms debt to equity ratio is currently 2. The Halifax Corporation has
The Halifax Corporation expects next years net income to be $15 million. The firms debt to equity ratio is currently 2. The Halifax Corporation has $12 million of capital expenditures planned for projects with positive NPVs for next year. Management plans to maintain its existing debt to equity ratio. According to the residual distribution model (assuming all payments are in the form of dividends), how large should The Halifax Corporations dividend be next year?
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