If the company follows a residual dividend policy how much


Pavlin Corp.'s projected capital budget is $2,000,000, its target capital structure is 40% debt and 60% equity, and its forecasted net income is $850,000. If the company follows a residual dividend policy, how much dividends will it pay or, alternatively, how much new stock must it issue?

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Finance Basics: If the company follows a residual dividend policy how much
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