Problem:
Northern Foods has aftertax earnings of $43,200 for the year. Thefirm adheres to a residual dividend policy and maintains adebt-equity ratio of .6. The firm needs $45,000 for capital investment.
Required:
Question: How much will the firm pay out in dividends from this year's earnings?
Choose one:
a. $16,200
b. $18,000
c. $24,650
d. $26,325
e. $15,075
Note: Please provide full description.