Question: Torrence Inc. has the following data. If it uses the residual dividend model, how much total dividends, if any, will it pay out? Capital budget

Torrence Inc. has the following data. If it uses the residual dividend model, how much total dividends, if any, will it pay out?

Capital budget

$975,000
% Debt

60%
Net income (NI)

$635,000

Group of answer choices

$213,150

$240,100

$262,150

$245,000

$284,200

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