What will be its dividend payout ratio

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Question - Residual Distribution Model Puckett Products is planning for $4 million in capital expenditures next year. Puckett's target capital structure consists of TEI% debt and 30% equity. If net income next year is $3 million and Puckett follows a residual distribution policy with all distributions as dividends, what will be its dividend payout ratio?

Reference no: EM133066732

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