Residual distribution model

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Reference no: EM13826761

Residual Distribution Model

Plucky Products is planning for $3.3 million in capital expenditures next year. Plucky's target capital structure consists of 35% debt and 65% equity. If net income next year is $2.4 million and Plucky follows a residual distribution policy with all distributions as dividends, what will be its dividend payout ratio? Round your answer to two decimal places.

Reference no: EM13826761

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