Calculating dividend payout ratio

Reference no: EM1354139

Company x has a target capital structure that consists of 70% debt and 30% equity. the company anticipates that its capital budget for the upcoming year will be $3,000,000. if company x reports net income of $2,000,000 and it follows a residual dividend payout policy, what will be its dividend payout ratio?

Reference no: EM1354139

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