Calculate the resulting dividend payout ratio

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Reference no: EM131526658

Chancellor Industries has retained earnings available of ?$1.29million. The firm plans to make two investments that require financing of $1,044,305 and$ 1.86 ?million, respectively. Chancellor uses a target capital structure with 59?% debt and 41?% equity. Apply the residual theory to determine what? dividends, if? any, can be paid? out, and calculate the resulting dividend payout ratio.

Reference no: EM131526658

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