Answer:
total dividend payment = $500000
Explanation:
given data
planned capital expenditures = $2,000,000
debt = 35%
equity = 65%
net income = $1,800,000
solution
we get here first amount financed with equity that is express as
amount financed with equity = planned capital expenditures × equity .....1
amount financed with equity = $2,000,000 × 65%
amount financed with equity = $2,000,000 × 0.65
amount financed with equity = $1300000
and
now we get total dividend payment that is
total dividend payment = net income - amount financed with equity ..........2
total dividend payment = $1,800,000 - $1300000
total dividend payment = $500000
