Torrence Inc.has the following data.If it uses the residual dividend model,how much total dividends,if any,will it pay out? $$\begin{array} { l r }
\text { Capital budget } & \$ 1,025,000 \
\% \text { Debt } & 60 \% \
\text { Net income (NI) } & \$ 665,000
\end{array}$$
?
A) $316,200
B) $211,650
C) $234,600
D) $255,000
E) $193,800

Question

Torrence Inc.has the following data.If it uses the residual dividend model,how much total dividends,if any,will it pay out? $$\begin{array} { l r } 
\text { Capital budget } & \$ 1,025,000 \
\% \text { Debt } & 60 \% \
\text { Net income (NI) } & \$ 665,000
\end{array}$$
?
A) $316,200
B) $211,650
C) $234,600
D) $255,000
E) $193,800

Quizplus · Accepted Answer

The Answer of Torrence Inc.has the following data.If it uses the residual dividend model,how much total dividends,if any,will it pay out? $$\begin{array} { l r } 
\text { Capital budget } & \$ 1,025,000 \
\% \text { Debt } & 60 \% \
\text { Net income (NI) } & \$ 665,000
\end{array}$$
?
A) $316,200
B) $211,650
C) $234,600
D) $255,000
E) $193,800

Torrence Inc Capital budget $1,025,000% Debt 60% Net income (NI) $665,000\begin{array} { l r } \text { Capital budget } & \$ 1,025,000 \\\% \text { Debt } & 60 \% \\\text { Net income (NI) } & \$ 665,000\end{array} Capital budget % Debt Net income (NI) ​$1,025,00060%$665,000​

Torrence Inc $\begin{array} { l r } \text { Capital budget } & \$ 1,025,000 \\\% \text { Debt } & 60 \% \\\text { Net income (NI) } & \$ 665,000\end{array}$