Solved

Mortal Inc

Question 49

Multiple Choice

Mortal Inc.expects to have a capital budget of $450,000 next year.The company wants to maintain a target capital structure with 35% debt and 65% equity,and its forecasted net income is $400,000.If the company follows the residual dividend model,how much in dividends,if any,will it pay?


A) $101,050
B) $87,075
C) $84,925
D) $107,500
E) $105,350

Correct Answer:

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