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Forecasted Dividend Payout (Multichoice)

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Blease Inc. has a capital budget of $625,000, and it wants to maintain a target capital structure of 60% debt and 40% equity. The company forecasts a net income of $475,000. If it follows the residual dividend policy, what is its forecasted dividend payout ratio?

A. 40.61%
B. 42.75%
C. 45.00%
D. 47.37%
E. 49.74%

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Blease Inc. has a capital budget of $625,000, and it wants to maintain a target capital structure of 60% debt and 40% equity.

The company ...

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