If the firm has a target capital structure of 70 equity

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Owens Manufacturing has generated a net income of $ 750,000 for 2007. It has identified investment opportunities for 2008 totaling $ 900,000. If the firm has a target capital structure of 70% equity, and 30% debt, the firm's optimal dividend payout ratio (assuming only retained earnings will be used) under the residual model is?

Reference no: EM13485097

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