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What will be its dividend payout ratio

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Precision Casting has a current period net income of $1.3 million and pays no dividends. The present value of the company's future cash flows is $18 million. The company is entirely finance with equity and has 550,000 shares outstanding. If the company announces a dividend of $1 per share, what will be its dividend payout ratio?

Reference no: EM131466536

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