Clark Farms Inc

question 44

Multiple Choice

Clark Farms Inc.has the following data,and it follows the residual dividend model.Currently,it finances with 15% debt.Some Clark family members would like for the dividends to be increased.If Clark increased its debt ratio,which the firm's treasurer thinks is feasible,by how much could the dividend be increased,holding other things constant? ​

• A) $2,957,400
• B) $2,718,900
• C) $1,860,300
• D) $2,385,000
• E) $1,955,700

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