The projected capital budget of Kandell Corporation is $1, 000, 000, its target capital structure is 60% debt and 40% equity, and its forecasted net income is $550, 000.If the company follows a residual dividend policy, what total dividends, if any, will it pay out?
A) $122, 176
B) $128, 606
C) $135, 375
D) $142, 500
E) $150, 000
Correct Answer:
Verified
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