Puckett product is planning for 5 million in capital, Financial Management

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Puckett product is planning for 5 million in capital

Puckett product is planning for $5 million in capital expenditures next year. Puckett’s target capital structure consists of 60% debt and 40% equity. If net income next year is $3 million and Puckett follows a residual distribution policy with all distributions as dividends, what will be its dividend payout ratio?

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Financial Management: Puckett product is planning for 5 million in capital

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