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Demo You, Inc. is expected to generate $180 million in net income

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Demo You, Inc. is expected to generate $180 million in net income over the next year. Demo You has forecasted a capital budget of $88 million, & it wishes to maintain its current capital structure of 70% debt & 30% equity. If the company follows a strict residual dividend policy and makes distributions in the form of dividends, what is its expected dividend payout ratio for this year?;85.3%;89.6%;68.2%;64.0%

 

Paper#34422 | Written in 18-Jul-2015

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