How much income must it earn and what will its dividend


DePaul Inc. forecasts a capital budget of $725,000. The CFO wants to maintain a target capital structure of45% debt and 55% equity, and she also wants to pay a dividend of $500,000. If the company follows the residual dividend model 4. a. how much income must it earn? b. and what will its dividend payout ratio be?

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Financial Management: How much income must it earn and what will its dividend
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