Residual dividend policy dividend and payout ratio

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Reference no: EM13115216

Fletcher Corp. has a capital budget of $1,000,000, but wants to maintain a target capital structure of 60% debt and 40% equity. The company forecasts this years net income to be $600,000. If the company does follow a residual dividend policy, what will be its dividend paid? What will be its dividend payout ratio?

Reference no: EM13115216

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