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24. Redwood Systems follows a strict residual dividend policy. The company estimates that its capital expenditures this year will be $40 million, its net income
24. Redwood Systems follows a strict residual dividend policy. The company estimates that its capital expenditures this year will be $40 million, its net income will be $30 million, and its target capital structure is 60% equity and 40% debt. What will be the companys dividend payout ratio? A. 80% B. 60% C. 40% D. 20% E. 15%
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