What is the companyrsquos pay-out ratio for the following, Ask an Expert

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What is the company’s pay-out ratio for the following problem: Pate & Co. has a capital budget of $3,000,000. The company wants to maintain a target capital structure that is 15% debt and 85% equity. The company forecasts that its net income this year will be $3,500,000. If the company follows a residual dividend policy, (note: you are not solving for "what will be its total dividend payment?" you are solving for: What is the company’s pay-out ratio)

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Financial Management, Finance

Category:- Financial Management
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