Mortal Inc

question 35

Multiple Choice

Mortal Inc.expects to have a capital budget of $500,000 next year.The company wants to maintain a target capital structure with 30% debt and 70% equity, and its forecasted net income is $400,000.If the company follows the residual dividend policy, how much in dividends, if any, will it pay?

• A)$42,869
• B)$45,125
• C)$47,500
• D)$50,000
• E)$52,500

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Definitions:

1770s and 1780s

The decades marking the American Revolutionary War and the formative years of the United States, leading to the adoption of the Constitution.

Loyalists

Individuals who remain loyal to the established government or ruling authority, especially during times of revolt or revolution.

Liberty

The state of not being subject to harsh limits set by authorities on one's lifestyle, actions, or political opinions.

Universal Suffrage

Refers to the right of all adult citizens to vote, regardless of gender, race, or social status, in elections.