What will be total dividend payment

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Question 1: Casper Co. has a capital budget of $10,000,000. The company wants to maintain a target capital structure that is 25% debt and 75% equity. The company forecasts that its net income this year will be $9,500,000. If the company follows a residual dividend policy, what will be its total dividend payment, if any?

Option A. $0

Option B. $500,000

Option C. $2,000,000

Option D. $7,000,000

Option E. None of the above

Reference no: EM132627542

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