What will be its total dividend payment

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Reference no: EM13923987

Rohter Galeano Inc. is considering how to set its dividend policy. It has a capital budget of $3,000,000. The company wants to maintain a target capital structure that is 15% debt and 85% equity. The company forecasts that its net income this year will be $3,500,000. If the company follows a residual dividend policy, what will be its total dividend payment? $205,000 $500,000 $950,000 $2,550,000 $3,050,000

Reference no: EM13923987

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