Fauver industries plans to have a capital budget of 800000, Ask an Expert

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Fauver Industries plans to have a capital budget of $800,000. It wants to maintain a target capital structure of 40% debt and 60% equity, and it also wants to pay out $225,000 as dividends. Assuming that the company follows the Residual Dividend Model, how much net income must it earn to meet its investment requirements, pay the dividend, and maintain the target capital structure? $480,000 $545,000 $705,000 $800,000.

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Financial Management, Finance

Category:- Financial Management
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