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The residual dividend model can be used to calculate the amount of dividends our company should pay. Our company has retained earnings of $150 million.
The residual dividend model can be used to calculate the amount of dividends our company should pay. Our company has retained earnings of $150 million. The optimal capital structure is considered to be 30 percent debt and 70 percent equity. The company has $160 million of new projects that it wants to finance. According to the residual dividend model how much money should the firm pay a dividend of this year?
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