Dividend payout policy-what will be dividend payout ratio

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A Telecommunications has a target capital structure that consists of 60 percent debt and 40 percent equity. The company anticipates that its capital budget for the upcoming year will be $4,000,000. If Axel reports net income of $3,000,000 and it follows a residual dividend payout policy, what will be its dividend payout ratio?

Reference no: EM131089338

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