Puckett follows a residual distribution policy with all


Residual Distribution Model Puckett Products is planning for $2.9 million in capital expenditures next year. Puckett's target capital structure consists of 70% debt and 30% equity. If net income next year is $2.4 million and Puckett follows a residual distribution policy with all distributions as dividends, what will be its dividend payout ratio? Round your answer to two decimal places.

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Financial Econometrics: Puckett follows a residual distribution policy with all
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