Question: Please show all steps required to solve. Preferably use Excel. Thanks. Ehrhorn Industries has a capital budget of $2,500,000, but it wants to maintain a

Please show all steps required to solve. Preferably use Excel. Thanks.

Ehrhorn Industries has a capital budget of $2,500,000, but it wants to maintain a target capital structure of 40% debt and 60% equity. The company expects to pay a dividend of $500,000. If the company follows a residual dividend policy, what is its forecasted dividend payout ratio? 25.00% 27.5 0% 31.25% 33.33% 36.00% Pans-rs

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