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    Distributions to Shareholders: Dividends and Repurchases

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    Brammer Corp.'s projected capital budget is $1,000,000, its target capital structure is 60% debt and 40% equity, and its forecasted net income is $550,000. If the company follows a residual dividend policy, what total dividends, if any, will it pay out?

    A. $122,176
    B. $128,606
    C. $135,375
    D. $142,500
    E. $150,000

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