A

B

C

D

E

F

G

H

August 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 $$1,000,000.$ If August reports net income of $$1,200,000$ and it follows a residual dividend payout policy, what will be its dividend payout ratio?

Optimal Capital Structure

Financial Leverage Effects

Residual Dividend Model

Stock Repurchases