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D tech Inc. projects the following data for the coming year. If the firm follows the residual dividend model and also maintains its target capital

D tech Inc. projects the following data for the coming year. If the firm follows the residual dividend model and also maintains its target capital structure, what will its dividend payout ratio be?

EBIT$2,900,000 Capital budget $500,000

Interest rate10% % Debt40%

Debt outstanding$4,700,000 % Equity60%

Shares outstanding5,000,000Tax rate40%

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