Bufftech inc has a capital budget of 1800000 and projects a


BuffTech, Inc. has a capital budget of $1,800,000 and projects a net income of $750,000. The firm's target capital structure includes 50% debt. Assuming that the firm follows the Residual Dividend Model, how much dividends, if any, should it pay out?

$15,000

$30,000

$19,750

$22,500

The firm should not pay any dividends.

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Financial Management: Bufftech inc has a capital budget of 1800000 and projects a
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