Wayne Enterprises Inc.has a target debt/equity ratio of 0.1765.Its capital budget (for new projects)for next year is estimated at $110 million.Estimated net income is $100 million.Wayne Enterprises has 100 million shares outstanding.Find Wayne Enterprises dividends using the residual dividend approach.

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D_t = 11ea7fdb_fc4d_2145_a768_63ad0293ce50_TB2902_11 D_t × Shares Outstanding = Total Dividends Total Dividends = Net 11ea7fdb_fc4d_2146_a768_f765bc1e02d1_TB2902_11 - 11ea7fdb_fc4d_2147_a768_5d03b9c8b1b1_TB2902_11 × 11ea7fdb_fc4d_2148_a768_13b5653e1c95_TB2902_11 11ea7fdb_fc4d_4859_a768_379697e0331b_TB2902_11 = $110 million w_E = 11ea7fdb_fc4d_485a_a768_e9c04e820a14_TB2902_11 = the target capital structure weight for equity: 11ea7fdb_fc4d_485b_a768_a5d39b4f6208_TB2902_11 = w_E = 11ea7fdb_fc4d_485c_a768_8579bd5a62fb_TB2902_11 w_E = 11ea7fdb_fc4d_485d_a768_f1fd00c31f18_TB2902_11 w_E = 0.85 Total Dividends = $100 - 0.85 × $110 Total Dividends = $6.5 million Div = 11ea7fdb_fc4d_485e_a768_750275149a4c_TB2902_11 = $0.065 per share