Problem:
Perkin's Corporation is planning for $4.9 million in capital expenditures next year. Perkin's target capital structure consists of 65% debt and 35% equity. If net income next year is $1.8 million and Perkin follows a residual distribution policy with all distributions as dividends,
Required:
What will be its dividend payout ratio?
Note: Please show how you came up with the solution.