Question: Pavlin Corp.'s projected capital budget is $2,000,000 its target capital structure is 40% debt and 60% equity, and its forecasted net income is $1,000,000. If

Pavlin Corp.'s projected capital budget is $2,000,000 its target is 40% debt and 60% equity, and its forecasted net income is $1,000,000. If the company follows a residual policy, how much dividends will it pay or, alternatively, how much new stock must it issue?

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