Using the residual dividend payment model, calculate the amount that Roadtrip, Inc would be distributing to...

 

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Using the residual dividend payment model, calculate the amount that Roadtrip, Inc would be distributing to its shareholders: (a) Capital budget = $ 1,000,000; (b) Target capital structure = 35% debt and 65% equity; (c) Expected Net Income of $ 750,000. Select one: a. Payout ratio of 65% b. 35% payout ratio c. They will distribute among their shareholders $ 487,500 d. They will distribute among their shareholders $ 650,000 (Edited) 5 Restore original Using the residual dividend payment model, calculate the amount that Roadtrip, Inc would be distributing to its shareholders: (a) Capital budget = $ 1,000,000; (b) Target capital structure = 35% debt and 65% equity; (c) Expected Net Income of $ 750,000. Select one: a. Payout ratio of 65% b. 35% payout ratio c. They will distribute among their shareholders $ 487,500 d. They will distribute among their shareholders $ 650,000 (Edited) 5 Restore original