Company follows residual distribution policy

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Reference no: EM131938873

Petersen Co. has a capital budget of $ 996. The company wants to maintain a target capital structure that is 47 percent debt and remaining percent is equity. The company forecasts that its net income this year will be $ 590. If the company follows a residual distribution policy (with al distributions in the form of cash dividends), what will be its payout ratio? Enter your answer to the nearest .1%. Enter your answer as a whole number, thus 25.1% would be 25.1 not .251. Do not use % signs in your answer

Reference no: EM131938873

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