What will be its dividend payout ratio

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Reference no: EM13766891

Puckett Products is planning for $4.5 million in capital expenditures next year. Puckett's target capital structure consists of 50% debt and 50% equity. If net income next year is $2.8 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.

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Reference no: EM13766891

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