Question
Dentaltech Inc. projects the following data for the coming year. If the firm follows the residual dividend policy and also maintains its target capital structure,
Dentaltech Inc. projects the following data for the coming year. If the firm follows the residual dividend policy and also maintains its target capital structure, what will its payout ratio be?
| EBIT | $2,000,000 | Capital budget | $850,000 |
| Interest rate | 10% | % Debt | 40% |
| Debt outstanding | $5,000,000 | % Equity | 60% |
| Shares outstanding | $5,000,000 | Tax rate | 40% |
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Construction Auditing Planning Implementation Use
Authors: Peter Wotschke, Gregor Kindermann
1st Edition
3658388404, 978-3658388409
