What will be the dividends payout ratio


Axel Telecommunications has a target capital structure that consists of 75% of Debt and 25% of equity. The company anticipates that its capital budget for the upcoming year will be $ 4,000,000. If Axel reports Net Income of $ 2,000,000 and it follows a residual dividends payout policy, what will be its dividends payout ratio?

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Business Management: What will be the dividends payout ratio
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