Residual distribution model-dividend payout ratio

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Residual Distribution Model

Puckett Products is planning for $4.2 million in capital expenditures next year. Puckett's target capital structure consists of 55% debt and 45% equity. If net income next year is $2 million and Puckett follows a residual distribution policy with all distributions as dividends, what will be its dividend payout ratio? __%

Reference no: EM131183341

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