If the company follows a residual distuction model and pays


Orange Inc has a capital budget of 1.5 Million. The company is forecasting a target captial structure of 60% dept and 40% equity. The company is forcasting net income of 750,000. If the company follows a residual distuction model and pays all distributions as dividends what will be the company's payout ratio? Please show work.

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Financial Management: If the company follows a residual distuction model and pays
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