$ 1,500,000 they can pay in dividends this year.
As per the Residual dividend policy company will pay Dividends after cutting the investment cost from total earnings.
Therefore Total Dividend Pay this Year = Total Earning - Investment.
Therefore Total Dividend Pay this Year = 2800000 - 1300000
Therefore Total Dividend Pay this Year = $ 1,500,000
A residual dividend coverage calculates dividends paid to shareholders, primarily based on the number of earnings ultimately after capital expenditures had been paid.
Agencies that pay residual dividends use cash go with the flow to cover expenses first, then pay dividends to shareholders from the amount it truly is left over.
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