Torrence Inc $$\begin{array} { l r } \text { Capital budget } & \$ 1,000,00 \\\% \text { Debt } & 60 \% \\\text { Net income (NI) } & \$ 625,000\end{array}$$

question 35

Multiple Choice

Torrence Inc. has the following data. If it uses the residual dividend model, how much total dividends, if any, will it pay out? $$\begin{array} { l r } \text { Capital budget } & \$ 1,000,00 \\\% \text { Debt } & 60 \% \\\text { Net income (NI) } & \$ 625,000\end{array}$$

• A) $183,264
• B) $192,909
• C) $203,063
• D) $213,750
• E) $225,000

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Definitions:

Executive Branch

One of the three branches of government, tasked with enforcing laws, it is headed by the President of the United States and includes the Cabinet and executive departments.

Alexander Hamilton

One of the Founding Fathers of the United States, known for his role in establishing the national banking system and advocating for a strong federal government.

NATO

The North Atlantic Treaty Organization, a military alliance formed in 1949 by countries in North America and Europe to provide collective defense against aggression.

Soviet Aggression

Refers to the actions taken by the Soviet Union to expand its influence and territory during the Cold War, often seen as threats to non-communist countries.