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Posted on Jul 20, 2024

ABC inc has a capital budget of $120 million. It's target capital structure is 30% debt and 70% equity. It has forecasted a net income

ABC inc has a capital budget of $120 million. It's target capital structure is 30% debt and 70% equity. It has forecasted a net income of $150 million. The company has 100 million shares outstanding. Using the distribution model, what is the dividend payout ratio and how much can ABC inc. pay out in dividends per share?

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