Wayne Enterprises Inc has a target debt/equity ratio of 0.1765. Its ca

Wayne Enterprises Inc has a target debt/equity ratio of 0.1765. Its capital budget (for new projects) for next year is estimated at $110 million. Estimated net income is $100 million. Wayne Enterprises has 100 million shares outstanding.

Find Wayne Enterprises dividends using the residual dividend approach.
A) $0.035
B) $0.045
C) $0.055
D) $0.065
E) $0.075

ANSWER

D