Payout ratio-residual dividend policy
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81. A company follows a strict residual dividend policy. The company has a capital budget of 3 mil. It has a target capital structure which consists of 30% debt and 70% equity. The company forecasts that its net income will be 3.5 mil. What will be the company's payout ratio this year?
25%
30
35
40
45
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Solution Summary
Calculates dividend payout ratio.
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A co. follows a strict residual dividend policy. The co. has a capital budget of 3 mil. It has a target capital structure which consists of 30% debt and 70% equity. The company ...
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