Calculate the resulting dividend payout

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Chancellor Industries has retained earnings available of $1.19 million. The firm plans to make two investments that require financing of $916,384 and $1.66 million, respectively. Chancellor uses a target capital structure with 66?% debt and 34?% equity. Apply the residual theory to determine what? dividends, if? any, can be paid? out, and calculate the resulting dividend payout ratio.

Reference no: EM131456540

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