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Stryker Corporation has a capital budget of $16,000,000, it wants to maintain a target capital...

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Accounting

Stryker Corporation has a capital budget of $16,000,000, it wants to maintain a target capital structure of 25% debt and 75% equity, and it also wants to pay a dividend of $2,500,000. If Stryker follows a residual dividend policy, how much net income must it earn to meet its capital budgeting requirements and pay the dividend while at the same time keeping its capital structure in balance?
Group of answer choices
$17,250,000
$15,750,000
$14,500,000
$12,750,000

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