Chancellor Industries has retained earnings available of

$1.15

million. The firm plans to make two investments that require financing of

$882,679

and

$1.65

million, respectively. Chancellor uses a target capital structure with

62%

debt and

38%

equity. Apply the residual theory to determine what dividends, if any, can be paid out, and calculate the resulting dividend payout ratio.

The dividend amount, if any, that can be paid out is

$enter your response here.

(Round to the nearest dollar.)

Part 2

The resulting dividend payout ratio is enter your response here%.

(Round to one decimal place.)