How much should it pay dividend for shareholders

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Question - A Company has generated $100,000 in earnings this year, last year it generated $30,000 in earnings and paid dividends of $1,500. This year the company is thinking to expand a project and it needs a capital budget $70,000, knowing that the debt ratio of the company is 30%. If the company needs to pay dividend same as the last year payout ratio, how much should it pay dividend for shareholders?

Reference no: EM133014549

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