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Silvana Inc. projects the following data for the coming year. If the firm follows the residual dividend policy and also maintains its target capital structure,

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Silvana Inc. projects the following data for the coming year. If the firm follows the residual dividend policy and also maintains its target capital structure, what will its payout ratio be? EBIT $2,000,000 Capital budget $800,000 Interest rate 10% % Debt 40% Debt outstanding $5,000,000 % Equity 606 Shares outstanding 5,000,000 Tax rate 2596 Select the correct answer. a. 56.66% O b. 57.33% O C. 58.67% O d. 55.99% O e. 58.00% O

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