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    Divident Payout Ratio: Robert Inc

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    Robert Inc has a capital budget of $1,000,000 but is wants to maintain a target capital structure of 60% debt and 40% equity.
    The company forecasts this year's net income to be $600,000 if the company follows a residual dividend policy what will be its dividend payout ratio.

    My answer is 33.33%

    © BrainMass Inc. brainmass.com June 3, 2020, 9:16 pm ad1c9bdddf
    https://brainmass.com/business/capital-structure-and-firm-value/divident-payout-ratio-robert-inc-174135
    $2.19

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