Total dividend payment, The company wants to maintain a

Total dividend payment

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

Reference no: EM13155295

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