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    Residual dividend policy

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    Keane Tech has a capital budget of $1,100,000, bbut it wants to amintain a target capital structure of 50% equity and 50% debt. The company expects to pay a dividned of $250,000. If the company follows a residual dividend policy, what is its forecasted net income?


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    Solution Summary

    The solution explains how to determine the amount of net income under a residual dividend policy