Question: Computer Inc. projects the following data for the coming year. If the firm follows the residual dividend model and also maintains its target capital structure,

Computer Inc. projects the following data for the coming year. If the firm follows the residual dividend model and also maintains its target capital structure, what will its dividend payout ratio be? EBIT $2,000,000 Capital budget $850,000 Interest rate 1296 96 Debt 4546 Debt outstanding $5,000,000 96 Equity 5596 Shares outstanding 5,000,000 Tax rate 409%
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
