The Alex Corp. has a target capital structure of 40% debt and 60% equity. Its capital budget

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The Alex Corp. has a target capital structure of 40% debt and 60% equity. Its capital budget for next year is estimated to be US$40 million. Its estimated net income is US$30 million.

If Alex follows a residual dividend policy, calculate its dividend .

Related Book For answer-question

Financial management theory and practice

ISBN: 978-0324422696

12th Edition

Authors: Eugene F. Brigham and Michael C. Ehrhardt

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Posted Date: Jun 21, 2023 11:56 AM

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The Alex Corp. has a target capital structure of 40% debt and 60% equity. Its capital budget

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The residual dividend policy suggests that a company should first use its earnings to fund profitabl... View the full answer

Financial management theory and practice

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