What is its forecasted dividend payout ratio

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Reference no: EM131616224

Ehrhorn Industries has a capital budget of $2, 500,000, but it wants to maintain a target capital structure of 40% debt and 60% equity. The company expects to pay a dividend of $500,000. If the company follows a residual dividend policy, what is its forecasted dividend payout ratio?

Reference no: EM131616224

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