.. Problem 14-02 (Residual Distribution Policy) eBook Residual Distribution Policy Petersen Company has a capital budget of $1.1 million. The company wants to maintain a target capital structure that is 70% debt and 30% equity. The company forecasts that its net income this year will be $800,000. If the company follows a residual distribution model and pays a distributions as dividends, what will be its payout ratio Round your answer to two decimal places 96