What total dividends will be paid

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Problem 1: ABC had after-tax earnings of ?5,000,000 in 2019. The company needs ?5,000,000 for new investments and plans to finance 70% of those investments with debt. If ABC follows a residual dividend policy, what total dividends will be paid?

a. ?0
b. ?1,500.000
c. ?5,000,000
d. ?3,500,000

Reference no: EM132916707

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