Dentaltech Inc. projects the following data for the coming year.
If the firm follows the residual...
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Finance
Dentaltech Inc. projects the following data for the coming year.If the firm follows the residual dividend model and also maintainsits target capital structure, what will its dividend payout ratiobe?
EBIT
$2,600,000
Capital budget
$1,325,000
Interest rate
10%
% Debt
40%
Debt outstanding
$4,900,000
% Equity
60%
Shares outstanding
5,000,000
Tax rate
25%
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