AALE Inc has a capital budget of $625.000, and it wants to maintain a target...
70.2K
Verified Solution
Link Copied!
Question
Accounting
AALE Inc has a capital budget of $625.000, and it wants to maintain a target capital structure of 40% debt and 60% equity. The company forecasts a net income of $479,764. If it follows the residual dividend policy, what is its forecasted dividend payout ratio? Residual Distribution Formula Distribution - Net Income - (Target equity ratio)(Total capital budget) Enter your answer rounded to 2 decimal places, and do not enter any symbols such as $, % or commas. Enter the percentage value, not the decimal (eg. 12.32 not 0.1232)
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
