Follows residual dividend policy

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Reference no: EM131573328

Lafayette, Inc. follows a residual dividend policy. Lafayette, Inc. will have $750,000 in profits this year. It is accepting five positive net present value projects for a total cost of $450,000. How much will Lafayette, Inc. pay out to its shareholders this year?

$300,000

$1,250,000

$450,000

$750,000

Reference no: EM131573328

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