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Trenton, Inc. has a capital budget of $1,500,000. It wants to maintain a target capital structure of 40% debt and 60% equity. The company forecasts a...

Trenton, Inc. has a capital budget of $1,500,000. It wants to maintain a target capital structure of 40% debt and 60% equity. The company forecasts a net income of $1,200,000. If it follows a residual dividend policy, what is its forecasted dividend payout ratio?

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