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Question
Stargell Industries follows a strict residual dividend policy. The company has a capital budget of $3,000,000. It has a target capital structure which consists of 30 percent debt and 70 percent equity. The company forecasts that its net income will be $3,500,000. What will be the company's payout ratio this year?
a. 25%
b. 30%
c. 35%
d. 40%
e. 45%
Answer
This answer is hidden. It contains 1 characters.
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