Company follows residual dividend policy

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Reference no: EM131918503

Ericka Laundry earned $200,000 this year. The company follows the residual dividend policy when paying dividends. Ericka Laundry has determined that it needs a total of $220,000 for investment in capital budgeting projects this year. If the company debt- to- asset ratio is 70 percent, what will its dividend payout ratio be this year?

Reference no: EM131918503

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