Dentaltech Inc. projects the following data for the coming year. If the firm follows the residual dividend

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Dentaltech Inc. projects the following data for the coming year. If the firm follows the residual dividend policy and also maintains its target capital structure, what will its payout ratio be?

Data Table
EBIT	$2,000,000	Capital budget	$850,000
Interest rate	10%	% Debt	40%
Debt outstanding	$5,000,000	% Equity	60%
Shares outstanding	$5,000,000	Tax rate	40%

Related Book For answer-question

Financial and Managerial Accounting

ISBN: 978-1285078571

12th edition

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

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Posted Date: Jan 05, 2021 01:55 AM

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Dentaltech Inc. projects the following data for the coming year. If the firm follows the residual dividend

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Net income EBITinterestdebt1tax rate 200... View the full answer

Financial and Managerial Accounting

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