Rohter Galeano Inc

question 17

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:

Fertility

The natural capability of producing offspring, influenced by factors like health, nutrition, and age in both males and females.

Life Span

The duration of time from the birth to the death of an organism.

Uncertainty Of Reproduction

The unpredictability associated with the ability to produce offspring, often influenced by genetic, environmental, or social factors.

Adaptive

The ability of an organism or species to adjust or change in response to changes in its environment, enhancing survival and reproduction.