What will its dividend payout ratio be

Reference no: EM13281489

D. Paul Inc. forecasts a capital budget of $700,000. The CFO wants to maintain a target capital structure of 45% debt and 55% equity, and she also wants to pay a dividend of $725,000. If the company follows the residual dividend model, how much income must it earn, and what will its dividend payout ratio be?

Reference no: EM13281489

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