Question: Hello, kindly help me solve this problem about the Distribution to shareholders: Residual distribution model. Axel Telecommunications has an optimal capital structure composed of 70%

Hello, kindly help me solve this problem about the Distribution to shareholders: Residual distribution model.

Axel Telecommunications has an optimal capital structure composed of 70% debt and 30% equity capital. You anticipate that next year's capital budget will be $ 3,000,000. What will be the ratio of dividend payments if net income is $ 2,000,000 and you apply a residual distribution model?

Reference book:

Corporate Finance: A Focused Approach by Ehrhardt and Brigham Second Edition

Thanks!

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