Business
Business, 05.07.2020 14:01, SandyRiverty

Paul Inc. forecasts a capital budget of $725,000. The CFO wants to maintain a target capital structure of 45% debt and 55% equity, and it also wants to pay dividends of $500,000. If the company follows the residual dividend policy, how much income must it earn, and what will its dividend payout ratio be?

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Paul Inc. forecasts a capital budget of $725,000. The CFO wants to maintain a target capital structu...

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