Homework Answers
Capital Budget = $14500
=> Total Equity = 60% of 14500 = $8700
Net Income = $12000
Residual Dividend Paid = Net Income - Total Equity = 12000 - 8700 = $3300
=> Payout Ratio = Residual Dividend/Net Income = 3300/12000 * 100% = 27.50%
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