National Co.’ CFO has provided the following information: · The company’s capital budget is expected to be P5,000,000. · The company’s target capital structure is 75 percent debt and 25 percent equity. · The company’s net income is P4,600,000. If the company follows a residual dividend policy, what portion of its net income should it pay out as dividends this year? Format: 11.11%
National Co.’ CFO has provided the following information: · The company’s capital budget is expected to be P5,000,000. · The company’s target capital structure is 75 percent debt and 25 percent equity. · The company’s net income is P4,600,000. If the company follows a residual dividend policy, what portion of its net income should it pay out as dividends this year? Format: 11.11%
Chapter15: Dividend Policy
Section: Chapter Questions
Problem 13P
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National Co.’ CFO has provided the following information:
· The company’s capital budget is expected to be P5,000,000.
· The company’s target capital structure is 75 percent debt and 25 percent equity.
· The company’s net income is P4,600,000.
If the company follows a residual dividend policy, what portion of its net income should it pay out as dividends this year?
Format: 11.11%
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