What will be its dividend payout ratio

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Reference no: EM131934069

The capital budget forecast for the Santano Company is s725,000. The CFO wants to maintain a target capital structure of 40% debt and 60% equity, and th company is estimated to earn a net income of $600,000. If the company follow the residual dividend policy, how much cash dividend can be distributed, what will be its dividend payout ratio?

Reference no: EM131934069

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