Residual dividend model-what will its dividend payout ratio

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Reference no: EM131918610

LA Moving Company has the following data, dollars in thousands. If it follows the residual dividend model, what will its dividend payout ratio be?

Capital budget $6,700

% Debt 45%

Net income (NI) $7,250

a. 44.26%

b. 46.71%

c. 36.88%

d. 60.97%

e. 49.17%

Reference no: EM131918610

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