Torrence Inc. has the following data. If it uses the residual dividend model, how much total dividends, if any, will it pay out? $$\begin{array} { l r }
\text { Capital budget } & \$ 1,000,00 \
\% \text { Debt } & 60 \% \
\text { Net income (NI) } & \$ 625,000
\end{array}$$
A) $183,264
B) $192,909
C) $203,063
D) $213,750
E) $225,000

Question

Torrence Inc. has the following data. If it uses the residual dividend model, how much total dividends, if any, will it pay out? $$\begin{array} { l r } 
\text { Capital budget } & \$ 1,000,00 \
\% \text { Debt } & 60 \% \
\text { Net income (NI) } & \$ 625,000
\end{array}$$
A) $183,264
B) $192,909
C) $203,063
D) $213,750
E) $225,000

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? $$\begin{array} { l r } 
\text { Capital budget } & \$ 1,000,00 \
\% \text { Debt } & 60 \% \
\text { Net income (NI) } & \$ 625,000
\end{array}$$
A) $183,264
B) $192,909
C) $203,063
D) $213,750
E) $225,000

Torrence Inc Capital budget $1,000,00% Debt 60% Net income (NI) $625,000\begin{array} { l r } \text { Capital budget } & \$ 1,000,00 \\\% \text { Debt } & 60 \% \\\text { Net income (NI) } & \$ 625,000\end{array} Capital budget % Debt Net income (NI) ​$1,000,0060%$625,000​

Torrence Inc $\begin{array} { l r } \text { Capital budget } & \$ 1,000,00 \\\% \text { Debt } & 60 \% \\\text { Net income (NI) } & \$ 625,000\end{array}$