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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?

    $700,000
    $800,000
    $900,000
    $1,100,000

    © BrainMass Inc. brainmass.com October 9, 2019, 11:31 pm ad1c9bdddf
    https://brainmass.com/business/dividends-stock-repurchase-and-policy/residual-dividend-policy-problem-258883

    Solution Summary

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

    $2.19