What will be its dividend payout ratio

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Reference no: EM132072413

Residual Distribution Model Puckett Products is planning for $3 million in capital expenditures next year.

Puckett's target capital structure consists of 40% debt and 60% equity.

If net income next year is $1.8 million and Puckett follows a residual distribution policy with all distributions as dividends, what will be its dividend payout ratio? Round your answer to two decimal places.

Reference no: EM132072413

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