Question: PROBLEM 1 3 - 5 RESIDUAL DIVIDEND POLICY DATA Capital Expenditure Funding 4 0 % Debt 6 0 % Estimated Earnings 1 2 , 0

PROBLEM 13-5
RESIDUAL DIVIDEND POLICY
DATA
Capital Expenditure Funding 40%
Debt 60%
Estimated Earnings 12,000,000
A)
Capital Expenditure Financing =0
B)
Capital budget =10,000,000
Retained Earnings 4,000,000
Cash Dividends (residual)8,000,000
Dividend Payout Percentage =0%

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