What is forecasted dividend payout ratio

Reference no: EM13155304

Blease Inc. has a capital budget of $625,000, and it wants to maintain a target capital structure of 60% debt and 40% equity. The company forecasts a net income of $475,000. If it follows the residual dividend policy, what is its forecasted dividend payout ratio?

A) 40.61%

B) 42.75%

C) 45.00%

D) 47.37%

E) 49.74%

Reference no: EM13155304

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