Question 27 (1.5 points)

For the next three (3) years, the chief financial officer of a company has established the forecasts indicated in the table below concerning the investment budget and the annual profits of his company. 45% of the company's capital structure is debt and the rest is equity. There are currently 215,000 shares outstanding.

Year	Budget investments	Benefits
XX + 1	$ 270,000	$ 280,000
XX + 2	$ 400,000	$ 260,000
XX + 3	$ 350,000	$ 300,000

If the company applies a residual dividend policy annually, for what amount should the company issue ordinary shares in year XX + 2 in order to maintain its optimal capital structure?

Options for question 27:

$ 70,000

$ 312,000

$ 240,000

$ 60,000

$ 50,000