NY Fashions has the following data.If it follows the residual dividend model,how much total dividends,if any,will it pay out? $$\begin{array} { l r }
\text { Capital budget } & \$ 1,000,000 \
\% \text { Debt } & 65 \% \
\text { Net income (NI) } & \$ 625,000
\end{array}$$
?
A) $231,000
B) $258,500
C) $291,500
D) $335,500
E) $275,000

Question

NY Fashions has the following data.If it follows the residual dividend model,how much total dividends,if any,will it pay out? $$\begin{array} { l r } 
\text { Capital budget } & \$ 1,000,000 \
\% \text { Debt } & 65 \% \
\text { Net income (NI) } & \$ 625,000
\end{array}$$
?
A) $231,000
B) $258,500
C) $291,500
D) $335,500
E) $275,000

Quizplus · Accepted Answer

The Answer of NY Fashions has the following data.If it follows the residual dividend model,how much total dividends,if any,will it pay out? $$\begin{array} { l r } 
\text { Capital budget } & \$ 1,000,000 \
\% \text { Debt } & 65 \% \
\text { Net income (NI) } & \$ 625,000
\end{array}$$
?
A) $231,000
B) $258,500
C) $291,500
D) $335,500
E) $275,000