What will be divident payout ratio of net income


Homer Telecommunications has a target capital structure that consists of 70 percent debt and 30 percent equity. The company anticipants that its capital budget for the upcoming year will be $3,000,000. If Homer reports net income of $2,000,000 and it follows a residual dividend payout policy, what will be its divident payout ratio?

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Finance Basics: What will be divident payout ratio of net income
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