National Inc. has forecasted that its net income will be P520,000. The company has an debt-to-equity ratio of 25%. The dividend policy of the firm follows the residual dividend model. National Inc. has a project that needs funding amounting to P600,000. The number of issued and outstanding shares of National Inc. is 5,000. How much of the project must be funded by equity? a. P450,000 b. P480,000 c. P120,000 d. P150,000

National Inc. has forecasted that its net income will be P520,000. The company has an debt-to-equity ratio of 25%. The dividend policy of the firm follows the residual dividend model. National Inc. has a project that needs funding amounting to P600,000. The number of issued and outstanding shares of National Inc. is 5,000. How much of the project must be funded by equity? a. P450,000 b. P480,000 c. P120,000 d. P150,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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