Torrence Inc. expects to have a capital budget of $5,000,000 next year. The company wants to maintain a target capital structure with 45% debt and 55% equity, and its forecasted net income is $5,300,000. If the company follows the residual dividend model, what will its dividend payout ratio be?

Question options:

	48.11 Percent
	50.52 Percent
	55.57 Percent
	61.13 Percent
	67.24 Percent