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Wazir Ali Corporation expects next years net income to be $15 million. The firms debt ratio is currently 35%. Wazir has $12 million of profitable

Wazir Ali Corporation expects next years net income to be $15 million. The firms debt ratio is currently 35%. Wazir has $12 million of profitable investment opportunities, and it wishes to maintain its existing debt ratio.

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According to the residual distribution model (assuming all payments are in the form of dividends), how large should Wazirs dividend payout ratio be next year?

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