If the company announces a dividend of 1 per share what


Precision Casting has a current period net income of $1.3 million and pays no dividends. The present value of the company's future cash flows is $18 million. The company is entirely finance with equity and has 550,000 shares outstanding. If the company announces a dividend of $1 per share, what will be its dividend payout ratio?

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Finance Basics: If the company announces a dividend of 1 per share what
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