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:

Resting Metabolic Rate

The rate at which the body expends energy while at rest, essentially synonymous with basal metabolic rate but measured under less strict conditions.

Set Point

The theory that an individual's body weight is internally regulated and genetically predetermined.

Body Tissues

Groups of similar cells that perform specific functions within the body, such as muscle, nerve, epithelial, and connective tissues.

Self-Esteem

An individual's subjective evaluation of their own worth and capabilities.