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A company follows a strict residual dividend policy. It has a capital budget of $3,000,000 and a target capital structure that consists of 30% debt

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A company follows a strict residual dividend policy. It has a capital budget of $3,000,000 and a target capital structure that consists of 30% debt and 70% equity. Net income is forecast to be $3,500,000. Calculate the expected dividend payout ratio. Select one: a. 40.00% b. 60.00% c. 18.33% d. 74.29%

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