Clark Farms Inc ?
A) $2,957,400
B) $2,718,900
C) $1,860,300
D) $2,385,000
E)

question 51

Multiple Choice

Clark Farms Inc.has the following data,and it follows the residual dividend model.Currently,it finances with 15% debt.Some Clark family members would like for the dividends to be increased.If Clark increased its debt ratio,which the firm's treasurer thinks is feasible,by how much could the dividend be increased,holding other things constant? $$\begin{array} { l r } \text { Capital budget } & \$ 4,500,000 \\\text { Net income (NI) } & \$ 5,000,000 \\\% \text { Debt now } & 15 \% \\\% \text { Debt after change } & 68 \%\end{array}$$
?

• A) $2,957,400
• B) $2,718,900
• C) $1,860,300
• D) $2,385,000
• E) $1,955,700

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Definitions:

Own Behavior

Refers to an individual's actions or conduct, typically considered from the perspective of self-monitoring or self-awareness.

Labeling Theory

A perspective in sociology and criminology that considers the labeling of individuals or groups as deviant to play a significant role in their identification and behavior as such.

Normalization

The process of making something standard, normal, or acceptable within a societal or group context.

Stress

The condition in which the demands made on the person exceed the individual’s ability to cope with them.