What will be dividend payout ratio

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1. Puckett Products is planning for $5 million in capital expenditures next year. Puckett's target capital structure consists of 60% debt and 40% equity. If net income next year is $3 million and Puckett follows a residual distribution policy with all distribution as dividends, what will be its dividend payout ratio?


2. JPix management is considering a stock split. JPix currently sells for $120 per share and a 3 for 2 stock split is contemplated. What will be the company's stock price following the stock split, assuming that the split has no effect on the total market value of JPix's equity?

Reference no: EM1368337

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