Problem:
Grandin Inc. is evaluating its dividend policy. It has a capital budget of $607,000, and it wants to maintain a target capital structure of 60% debt and 40% equity. The company forecasts a net income of $459,000. If it follows the residual dividend policy, what is its percentage forecasted dividend payout ratio? (Note: Write your answer in the percentage format. i.e., write 0.10 as 10%.)
Note: Explain in detail.