Question: Scholes Motors has a capital budget of $1, 100,000, but it wants to maintain a target capital structure of 50% debt and 50% equity. The company expects to pay a dividend of $250,000. If the company follows a residual dividend policy, what is its forecasted dividend payout ratio?
Keane Tech has a capital budget of $1, 100,000, but it wants to maintain a target capital structure of 50% debt and 50% equity. The company expects to pay a dividend of $250,000. If the company follows a residual dividend policy, what is its forecasted net income?