Working capital will be maintained at 25% of revenues. How much should the firm return to its stockholders as a dividend?

The firm plans to finance its future capital investment needs using 20% debt. a. Which of these projects should the firm accept? b. How much (if any) should the firm pay out as dividends? 4. LimeAde Corporation, a large soft drink manufacturing firm, is faced with the decision of how much to pay out as dividends to its stockholders. It expects to have a net income of $1,000 (after depreciation of $500 ), and it has the following projects: The firm's beta is 1.5 , and the current risk-free rate is 6%. The firm plans to finance net capital expenditures (Capital Expenditures - Depreciation) and working capital with 20% debt. The firm also has current revenues of $5,000, which it expects to grow at 8%