Question
Dividend Payout The Wei Corporation expects next year's net income to be $20 million. The firm is currently financed with 45% debt. Wei has $8
Dividend Payout
The Wei Corporation expects next year's net income to be $20 million. The firm is currently financed with 45% debt. Wei has $8 million of profitable investment opportunities, and it wishes to maintain its existing debt ratio. According to the residual distribution model (assuming all payments are in the form of dividends), how large should Wei's dividend payout ratio be next year? Round your answer to two decimal places.
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Small Business Management Launching and Growing New Ventures
Authors: Justin Longenecker, Leo Donlevy, Terri Champion, William Petty, Leslie Palich, Frank Hoy
6th Canadian edition
176532218, 978-0176532215
