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% |
