NY Fashions has the following data. If it follows the residual dividend model, how much total dividends, if any, will it pay out? Capital budget$1,000,000 % Debt65% Net income (NI)$625,000 ? 

A. $231,000
B. $258,500
C. $291,500
D. $335,500
E. $275,000


Answer: E

Business

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