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Hootman Inc. expects $1.0 million of net income available to shareholders for next year. The company's optimal capital structure is 40% debt and 60% equity.
Hootman Inc. expects $1.0 million of net income available to shareholders for next year. The company's optimal capital structure is 40% debt and 60% equity. The capital needs for next year are $1.5 million. If the firm uses a residual dividend policy, what will be the firm's dividend payout ratio for next year?
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