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Using the residual dividend model, what amount of dividends should my company pay?

The following data applies to my company:

Net Income $ 300,000,000
Total Capital Budget $ 100,000,000
Debt/Asset Ratio WACC
0% 14.0%
10% 13.7%
20% 13.4%
30% 13.0%
40% 13.4%
50% 13.8%
60% 14.1%

Using the residual dividend model, what amount of dividends should my company pay?

Solution Summary

In a hand written response, the solution is very clear and carefully explained to arrive at an answer

$2.19