Question Details

If the company follows a residual dividend policy, what will be its total dividend payment 



 .	The projected capital budget of Kandell Corporation is $1,000,000, its target capital structure is 60% debt and 40% equity, and its forecasted net income is $550,000.  If the company follows a residual dividend policy, what total dividends, if any, will it pay out?
								
	a.	$122,176						
	b.	$128,606						
	c.	$135,375						
	d.	$142,500						
	e.	$150,000						
								

 .	Grandin Inc. is evaluating its dividend policy. It has a capital budget of $625,000, and it wants to maintain a target capital structure of 60% debt and 40% equity.  The company forecasts a net income of $475,000.  If it follows the residual dividend policy, what is its forecasted dividend payout ratio?
								
	a.	40.61%						
	b.	42.75%						
	c.	45.00%						
	d.	47.37%						
	e.	49.74%						


 .	The capital budget of Creative Ventures  Inc. is $1,000,000.  The company wants to maintain a target capital structure that is 30% debt and 70% equity.  The company forecasts that its net income this year will be $800,000.  If the company follows a residual dividend policy, what will be its total dividend payment ?
								
	a.	$100,000						
	b.	$200,000						
	c.	$300,000						
	d.	$400,000						
	e.	$500,000						
								



 .	Rohter Galeano Inc. is considering how to set its dividend policy. It has a capital budget of $3,000,000.  The company wants to maintain a target capital structure that is 15% debt and 85% 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?
								
	a.	$205,000						
	b.	$500,000						
	c.	$950,000						
	d.	$2,550,000						
	e.	$3,050,000						
								

 .	Sanchez Company has planned capital expenditures that total $2,000,000.  The company wants to maintain a target capital structure that is 35% debt and 65% equity.  The company forecasts that its net income this year will be $1,800,000. If the company follows a residual dividend policy, what will be its total dividend payment?
								
	a.	$100,000						
	b.	$200,000						
	c.	$300,000						
	d.	$400,000						
	e.	$500,000						




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