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 Target capital structure:70% debt, 30% equity to raise funds The

firms now needs to raise $1,200,000and has NI = $450,000 ➢ What should be the amount of dividend if the firm adopts the residual dividend policy?
➢ If the company has 1,000,000 shares outstanding,what is DPS?
A firm has $1000 earnings and a debt-equity ratio of 0.5. The firm decided to reinvest a portion of earnings.
➢ If a project costs $900, What should be the amount of dividend in order to maintain debt-equityratio?

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