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How much should be paid in dividends

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Question - Glenda Company expects to generate P10 million internally which could be available for financing part of its P12 million capital budget for this coming year. Glendas management believes that a debt-equity ratio of 40 percent is best for the firm. How much should be paid in dividends if the target debt-equity ratio is to be maintained?

A. P2,800,000

B. P1,428,571

C. P8,571,429

D. P4,000,000

Reference no: EM132576249

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