Petersen company has a capital budget of 12 million the, Ask an Expert

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Petersen Company has a capital budget of $1.2 million. The company wants to maintain a target capital structure which is 60% debt and 40% equity. The company forecasts that its net income this year will be $800,000.

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Question: If the company follows a residual distribution model and pays all distributions as dividends, what will be its payout ratio?

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Category:- Basic Finance
Reference No.:- M91175132

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