Question 11 (3 points) A company has a capital budget of $1,125,000. The company wants to maintain a target capital structure that is 20% debt and 80% equity. The company forecasts that its net income this year will be $2,000,000. If the company follows a residual distribution model and pays all distributions as dividends, what will be its payout ratio? 18% 60% 52% 55%