If all distributions are in the form of dividends how much


Consider the following information:

Capital budget: $800,000.

Target capital structure: 40% debt, 60% equity. Forecasted net income: $600,000.

If all distributions are in the form of dividends, how much of the $600,000 should we pay out as dividends? What will be the payout ratio?

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Financial Management: If all distributions are in the form of dividends how much
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