What total dividends will it pay out

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Brammer Corp.'s projected capital budget is $1,000,000, its target capital structure is 60% debt and 40% equity, and its forecasted net income is $550,000. If the company follows a residual dividend policy, what total dividends, if any, will it pay out?

A) $122,176

B) $128,606

C) $135,375

D) $142,500

E) $150,000

Reference no: EM13155311

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