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he capital budget forecast for the Santano Company is $725,000. The CFO wants to maintain a target capital structure of 45% debt and 55% equity,
he capital budget forecast for the Santano Company is $725,000. The CFO wants to maintain a target capital structure of 45% debt and 55% equity, and it also wants to pay dividends of $500,000. If the company follows the residual ividend policy, how much income must it earn, and what will its dividend payout ratio be? Net Income a. $1,040,415 Payout 64.40% O b. $1,092,436 67.62% c. $ 990,872 61.34% d. $ 943,688 58.41% e. $ 898,750 55.63%
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