Harrison Hardware anticipates $2 million in net income next year and a 20% participation in the firms

Question:

Harrison Hardware anticipates $2 million in net income next year and a 20% participation in the firm’s reinvestment plan. Management expects to spend $2.375 million on new capital projects, and maintain the current which is 64% equity without issuing new stock. What payout ratio has Harrison included in its plan for next year?

Capital Structure
Capital structure refers to a company’s outstanding debt and equity. The capital structure is the particular combination of debt and equity used by a finance its overall operations and growth. Capital structure maximizes the market value of a... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...