Intermediate Financial Management
Intermediate Financial Management
14th Edition
ISBN: 9780357516782
Author: Brigham, Eugene F., Daves, Phillip R.
Publisher: Cengage Learning
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Chapter 15, Problem 1P
Summary Introduction

To determine: Pay-out ratio.

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Residual Distribution Model Puckett Products is planning for $1.4 million in capital expenditures next year. Puckett's target capital structure consists of 35% debt and 65% equity. If net income next year is $2.1 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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