Calculate amount of the dividends

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XYZ has a capital budget of sixty million dollar, it opitimal capital structure is 40 percent debt and 60 percent equity. Its EBIT was 98 million dollar for a year. Has 200 million in assets and pays 10%on all of its debt. Tax rate is 35%. If the firm uses a residual policy, what will be the amount of the dividends it pays after financing its capital budget?

Reference no: EM1378386

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