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Question 19 (1 point) Fred's Foundry forecasts a capital budget of $675,000. The CFO wants to maintain a target capital structure of 30% debt and
Question 19 (1 point) Fred's Foundry forecasts a capital budget of $675,000. The CFO wants to maintain a target capital structure of 30% debt and 70% equity and also wants to pay a dividend of $400,000. If the company follows the residual dividend model, how much income must it earn and what will its dividend payout ratio be? $602,500; 66.39% $872,500; 77.36% $872,500; 45.85% $602,500; 112.03%
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