Residual distribution policy with distributions as dividends

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Puckett Products is planning for $4.5 million in capital expenditures next year. Puckett's target capital structure consists of 45% debt and 55% equity. If net income next year is $2.7 million and Puckett 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: EM131011582

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