P&D Co.has a capital budget of $1,000,000.The company wants to maintain a target capital structure of 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?

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The company's target capital structure is 30% debt and 70% equity. This means that the company's total capital is $1,000,000, and $300,000 of that is debt and $700,000 is equity. The company's net income this year is $800,000. If the company follows a residual dividend policy, it will pay out all of its net income as dividends. Therefore, the company's total dividend payment will be $800,000.

P&D CoHas a Capital Budget of $1,000,000