Wayne Enterprises Inc

Multiple Choice

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