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Capital Structure and Dividend Policy

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Fletcher Corp. has a capital budget of $1,000,000, but it wants to maintain a target capital structure of 60% debt and 40% equity. The company forecasts this year's net income to be $600,000. If the company follows a residual dividend policy, what will be its dividend paid?

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As the company want to maintain the the capital structure same. It will ...

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  • MBA, Indian Institute of Finance
  • Bsc, Madras University
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