Find payout ratio

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Reference no: EM132847633

Question - MMM Corporation has the following data:

Outstanding shares of common stock 1000 thousand

Target capital structure Debt 30%

Equity 70%

Projected net income [P(NI)] 5000 thousands

The projected investments for next year 6000 thousands

Assume the residual distribution model is used with respect to dividends. Find payout ratio?

Reference no: EM132847633

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