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Rocketdyne is planning its cash distribution policy._ Company analysts have forecast the following: 75% Target equity ratio for capital structure 120 Capital budget for upcoming

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Rocketdyne is planning its cash distribution policy._ Company analysts have forecast the following: 75% Target equity ratio for capital structure 120 Capital budget for upcoming investment opportunities 80 Net income forecast Additional company information: 80 Shares outstanding, millions Using the residual distribution model, What is Rocketdyne's planned distribution based on the forecast? (think carefully about this) What does your answer for a) tell you about the firm's investment opportunities and/or capital structure target

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