Calculating the dividend payout ratio, Finance Basics

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Calculating the dividend payout ratio

Problem:

Open Door Manufacturer earned $100,000 this year. The company follows the residual dividend policy when paying dividends. Open Door has determined that it needs a total of $120,000 for investment in capital budgeting projects this year.

Required:

Question: If the company's debt/assets ratio is 50%, what will its dividend payout ratio be this year?

Note: Could someone please give me a step by step solution?

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Finance Basics: Calculating the dividend payout ratio

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Finance Basics: Calculating the dividend payout ratio

Reference No:- TGS0893577

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Total deferred payment price of the garage

Q : Frontier financial corporation

Q : Principal after the first payment

Q : What is the after-tax cost

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Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Calculating the dividend payout ratio

Reference No:- TGS0893577

Recent Questions Asked Finance Basics

Q : Total deferred payment price of the garage

Q : Frontier financial corporation

Q : Principal after the first payment

Q : What is the after-tax cost

Q : Calculating the dividend payout ratio

Q : Determining the cost of equity of shadow corp

Q : Current value when the lease expires

Q : Explain the key manner in which the business function

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