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
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
$2.49