Rsts target capital structure consists of 55 debt and 45, Ask an Expert

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RST's target capital structure consists of 55% debt and 45% equity. Its capital budget this year is forecast to be $2,500,000. It also wants to pay a dividend of $550,000. If the company follows the residual dividend policy, how much net income must it earn to meet its capital requirements, pay the dividend, and keep the capital structure in balance?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92859262

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