EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN: 9781337514835
Author: MOYER
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Kindly help me with this question general Accounting
Transcribed Image Text:The Wei Corporation expects next year's net
income to be $15 million. The firm's debt ratio is
currently 45%. Wei has $14 million of profitable
investment opportunities, and it wishes to
maintain its existing debt ratio. According to
the residual distribution model (assuming all
payments are in the form of dividends), how
large should Wei's dividend payout ratio be next
year?
Round your answer to two decimal
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