National Co.’ CFO has provided the following information: · The company’s capital budget is expected to be P5,000,000. · The company’s target capital structure is 75 percent debt and 25 percent equity. · The company’s net income is P4,600,000. If the company follows a residual dividend policy, what portion of its net income should it pay out as dividends this year? Format: 11.11%

National Co.’ CFO has provided the following information: · The company’s capital budget is expected to be P5,000,000. · The company’s target capital structure is 75 percent debt and 25 percent equity. · The company’s net income is P4,600,000. If the company follows a residual dividend policy, what portion of its net income should it pay out as dividends this year? Format: 11.11%

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 13P

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