The capital budget of Creative Ventures Inc. is $1,000,000. The company wants to maintain a target capital structure that is 30% debt and 70% equity. The company forecasts that its net income this year will be $800,000. If the company follows a residual dividend policy, what will be its total dividend payment?

Answer rating: 100% (QA)

To determine the total dividend payment under a residual dividend policy we need to follo... View the full answer