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Dividend and Other Payouts
Dividend and Other Payouts
Dividends and
Other Payouts
Learning Goals
Table 13.1 shows that if IOS1 exists, the firm will pay out
$750,000 in dividends because only $1,050,000 of the
$1,800,000 of available earnings is needed. The table also
shows the dividend payouts associated with IOS2 and
IOS3. Depending on which IOS exists, the firm’s dividend
would in effect be the residual, if any, remaining after all
acceptable investments have been financed.