Question: Facts: Expected Earnings = $40 M; Optimal Capital Structure = 50% Equity and 50% Debt; Optimal Capital Budget = $50M; what is the payout ratio

Facts: Expected Earnings = $40 M; Optimal Capital Structure = 50% Equity and 50% Debt; Optimal Capital Budget = $50M; what is the payout ratio based on the residual dividend theory?

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