Sanchez Company Has Planned Capital Expenditures That Total $2,000,000

question 4

Multiple Choice

Sanchez Company has planned capital expenditures that total $2,000,000.The company wants to maintain a target capital structure that is 35% debt and 65% equity.The company forecasts that its net income this year will be $1,800,000.If the company follows a residual dividend policy, what will be its total dividend payment?

• A) $100,000
• B) $200,000
• C) $300,000
• D) $400,000
• E) $500,000