### Total dividend payment

Assignment Help Accounting Basics
##### Reference no: EM13155295

D&P Co. has a capital budget of \$2,000,000. The company wants to maintain a target capital structure that is 35% debt and 65% equity. The company forecasts that its net income this year will be \$1,800,000. If the company follows a residual dividend policy, what will be its total dividend payment?

A) \$100,000

B) \$200,000

C) \$300,000

D) \$400,000

E) \$500,000

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