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How much in dividends if any will it pay

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Question - Oilers Inc. expects to have a capital budget of $500,000 next year. The company wants to maintain a target capital structure with 40% debt and 60% equity, and its forecasted net income is $400,000. If the company follows the residual dividend policy, how much in dividends, if any, will it pay?

Reference no: EM133144316

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