Distribution policy with all distributions as dividends

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Reference no: EM131329812

Puckett Products is planning for $2.1 million in capital expenditures next year. Puckett's target capital structure consists of 50% debt and 50% equity. If net income next year is $1.6 million and Puckett follows a residual distribution policy with all distributions as dividends, what will be its dividend payout ratio? Round your answer to two decimal places.

Reference no: EM131329812

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