Ronaldo inc. has a capital budget of 1000000 but it wants, Ask an Expert

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Ronaldo Inc. has a capital budget of $1,000,000, but it wants to maintain a target capital structure of 60% debt and 40% equity. The company forecasts this year's net income to be $600,000. If the company follows a residual dividend policy, what will be its dividend payout ratio?

16.67%

20.00%

25.00%

33.33%

35.00%

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Category:- Basic Finance
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