Question: Please provide problem with accounting question ABC Inc. has a capital budget of $4 million. The firm's target capital structure consists of 60% debt. The

Please provide problem with accounting question

ABC Inc. has a capital budget of $4 million. The firm's target capital structure consists of 60% debt. The company is forecasting a net income of $2,000,000 for the year. Following the residual distribution model and paying all distributions as dividends, what will be the payout ratio? A. 10% B. 20%

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