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Petersen Company has a capital budget of $2.5 million. The company wants to maintain a target capital structure which is 80% debt and 20% equity.

Petersen Company has a capital budget of $2.5 million. The company wants to maintain a target capital structure which is 80% debt and 20% equity. The company forecasts that its net income this year will be $500,000. If the company follows a residual distribution model and pays all distributions as dividends, what will be its payout ratio?

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The dividend payout ratio= 0/... View the full answer

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