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Question: as a financial manager for willpower inc you have the...

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As a financial manager for WillPower, Inc, you have the following information:
a) The company follows a residual dividend policy;
b) The total capital budget for next year is likely to be $8,000,000;
c) The forecasted level of earnings next year is $8,000,000;
d) The target or optimal capital structure is a debt ratio of 40%;

Please answer the following questions:

a. What will be the amount funded with equity for the project ? (Keep the answer to a whole number. Example of answer format: $1,000,000)

b. Compute the amount of the dividend .   (Keep the answer to a whole number. Example of answer format: $1,000,000)

c. Compute the dividend pay-out ratio .     (Keep the answer to two decimals. Example of the answer format: 55.55%)

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