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Show Your Work Please Petersen Company has a capital budget of $1.3 million. The company wants to maintain a target capital structure that is 65%
Show Your Work Please
Petersen Company has a capital budget of $1.3 million. The company wants to maintain a target capital structure that is 65% debt and 35% equity. The company forecasts that its net income this year will be $890,000. If the company follows a residual distribution model and pays all distributions as dividends, what will be its payout ratio? If they want to maintain a target capital structure that is 55% debt and 45% equity, all else remaining equal, what will its payout ratio be Step by Step Solution
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