1. Question : (TCO C) Pate & Co. has a capital budget of $3,000,000. The company wants to maintain a target capital structure that is 15 percent debt and 85 percent equity. The company forecasts that its net income this year will be $3,500,000. If the company follows a residual dividend policy, what will be its total dividend payment?
Instructor Explanation: Answer is: c
Text: pp. 570-572 - Residual Dividends,
Words: 875 - Pages: 4