Alpha Graphics Press (AGP) uses the residual dividend approach to determine the company’s dividend payments. They have a target debt-to-equity ratio of ½. Next year AGP plans a capital budget of $60 million and earnings of $50 million. How much will AGP pay in dividends next year? Show your work.

Answer rating: 100% (QA)

To determine the dividends using the residual dividend approach we follow these steps 1 Calc... View the full answer