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Question 2 (6 points) UA Inc. estimates the following data for the next year. If the company follows the residual dividend policy and also maintains
Question 2 (6 points) UA Inc. estimates the following data for the next year. If the company follows the residual dividend policy and also maintains its target capital structure, what will its payout ratio be? $2,000,000 Capital budget $850,000 EBIT 10% % Debt Interest rate 30% $5,000,000 % Equity Debt outstanding 70% Shares outstanding $5,000,000 Tax rate 40% Q2.JPG a) 41.2% b) 33.9% C) 45.5% d) 39.1% e) 37.2%
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