Rohter Galeano Inc

question 52

Multiple Choice

Rohter Galeano Inc.is considering how to set its dividend policy.It has a capital budget of $3,000,000.The company wants to maintain a target capital structure that is 15% debt and 85% equity.The company forecasts that its net income this year will be $3,500,000.If the company follows a residual dividend policy, what will be its total dividend payment?

• A) $205,000
• B) $500,000
• C) $950,000
• D) $2,550,000
• E) $3,050,000

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Definitions:

Classical Conditioning

A method of learning that happens when an environmental trigger is associated with a naturally existing stimulus, yielding a trained reaction.

Social Conditioning

The process by which individuals learn the norms, values, and behaviors acceptable to their society through social interactions.

Physical Conditioning

A process of training or exercise aimed at improving physical fitness, strength, and endurance.

Socialization

The process by which individuals learn and adopt the values, norms, and behaviors considered appropriate in their society.