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The Altern Music Co

Question 68

Multiple Choice

The Altern Music Co.earns $4.25 per share, has 70,000 shares outstanding, and a capital budget of $200,000.If Altern Music raises all of its funds internally and follows the "passive residual policy", what are the annual dividends per share?


A) $1.70
B) $1.39
C) $2.55
D) $2.81

Correct Answer:

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