Problempampd co has a capital budget of 1000000 the company, Ask an Expert

Accounting

Problem:

P&D Co. has a capital budget of $1,000,000. The company wants to maintain a target capital structure which is 30 percent debt and 70 percent equity. The company forecasts that its net income this year will be $800,000.

Required:

Question: If the company follows a residual dividend policy, what will be its total dividend payment?

(a) $100,000
(b) $200,000
(c) $300,000
(d) $400,000
(e) $500,000

Question regarding the total dividend payment

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91169580

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