Dividend payout ratio-axel telecommunications


Problem:

Axel Telecommunications has a target capital structure that consists of 45% debt and 55% equity. The company anticipates that its capital budget for the upcoming year will be $1,000,000.

Required:

Question: If Axel reports net income of $1,800,000 and it follows a residual dividend payout policy, what will be its dividend payout ratio?

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Accounting Basics: Dividend payout ratio-axel telecommunications
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