The Capital Budget Forecast for the Santano Company Is $725,000

question 2

Multiple Choice

The capital budget forecast for the Santano Company is $725,000.The CFO wants to maintain a target capital structure of 45% debt and 55% equity,and it also wants to pay dividends of $500,000.If the company follows the residual dividend policy,how much income must it earn,and what will its dividend payout ratio be?
Net Income Payout

• A) $ 898,750 55.63%
• B) $ 943,688 58.41%
• C) $ 990,872 61.34%
• D) $1,040,415 64.40%
• E) $1,092,436 67.62%

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The perceptual or actual involvement of additional individuals in a situation, which can influence an individual's behavior or cognitive processes.

Performance

The act of carrying out or accomplishing an action, task, or function.

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A phenomenon wherein individuals exert less effort to achieve a goal when they work in a group than when they work alone.