Getler Inc.'s projected capital budget is $2,000,000, its target capital structure is 40% debt and...
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Finance
Getler Inc.'s projected capital budget is $2,000,000, its target capital structure is 40% debt and 60% equity, and its forecasted net income is $950,000. If the company follows a residual dividend policy, how much dividends will it pay or, alternatively, how much new stock must it issue?
Select the correct answer. a. Dividends $102 Stock issued $250,102 b. Dividends $205 Stock issued $250,205 c. Dividends $307 Stock issued $250,307 d. Dividends $0 Stock issued $250,000 e. Dividends $409 Stock issued $250,409
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