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Company A requires a $10 million capital investment. Target Capital 60% debt, 40% equity 1 million shares of stock outstanding Net income is $6 million.

Company A requires a $10 million capital investment.

Target Capital 60% debt, 40% equity

1 million shares of stock outstanding

Net income is $6 million.

The company follows a residual distribution policy with all distributions paid as dividends.

What is the forecasted dividend payout ratio?

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