What will be dividend payout ratio

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Problem 1: Cliff Sports Inc has a target capital structure that consists of 45% debt and 55% equity. The company anticipates that its capital budget for the upcoming year will be $1,000,000. If Cliff Sports Inc reports net income of $1,300,000 and it follows a residual dividend payout policy, what will be its dividend payout ratio?

Reference no: EM132816746

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