A company considers projects 1, 2 and 3 requiring initial capital outlays of $ 250,000, $ 300,000
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A company considers projects 1, 2 and 3 requiring initial capital outlays of $ 250,000, $ 300,000 and $ 450,000 respectively. The company finances its investments 45% by debt and the rest by equity. Profits for the year amount to $ 950,000. If the company has a residual dividend policy, determine the total amount paid in dividends to shareholders?
Options:
- $ 550,000
- $ 500,000
- $ 950,000
- $ 450,000
- $ 400,000
Expert Answer:
Answer rating: 100% (QA)
Solution 1 2 3 Initial capital 25000000 S30000000 45000000 a Debt 1125... View the full answer
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