Question
You areanalyzing your firm's dividend policy.Your firmhas a capital budget of $650,000, andyou want to maintain a target capital structure of 60% debt and 40%
You areanalyzing your firm's dividend policy.Your firmhas a capital budget of $650,000, andyou want to maintain a target capital structure of 60% debt and 40% equity. The company forecasts a net income of $500,000. Ifyou follow the residual dividend policy, what isyour firm'sforecasted dividend payout ratio?
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Essentials of Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
10th edition
77835425, 978-0077835422
