If the company follows a residual distribution policy with


Petersen Co. has a capital budget of $ 996. The company wants to maintain a target capital structure that is 47 percent debt and remaining percent is equity. The company forecasts that its net income this year will be $ 590. If the company follows a residual distribution policy (with al distributions in the form of cash dividends), what will be its payout ratio? Enter your answer to the nearest .1%. Enter your answer as a whole number, thus 25.1% would be 25.1 not .251. Do not use % signs in your answer

Request for Solution File

Ask an Expert for Answer!!
Financial Management: If the company follows a residual distribution policy with
Reference No:- TGS02734345

Expected delivery within 24 Hours