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(XYZ) Company expects earnings before interest and tax (EBIT) of $6,000,000, for the coming year. The firm’s capital structure consists of 40% debt and 60% equity, and its marginal tax rate is 32%. The cost of equity is 14%, and the company pays 7.5% rate on its$3,500,000 long-term debt. The common stock outstanding is 2,700,000 shares. In its next capital budgeting cycle, the firm expects to fund one large positive NPV project costing $2,200,000, and it will fund this project in accordance with its target capital structure. If the firm follows a residual dividend policy and has no other project what its expected dividend payout ratio (DPR)? What its dividend per share (DPS)? What its carnings per share (EPS)?

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