Problems Easy Answers to odd-numbered problems appear in Appendix A Problems 1-5 13-1 Residual Distribution Model Puckett Products is planning for $5 million in capital expenditures next year. Puckett's target capital structure consists of 60% debt and 40% equity. If net income next year is $3 million, and Puckett follows a residual distribution policy with all distributions as dividends, what will be its dividend payout ratio? 13-2 Residual Distribution Policy TDM Company has a capital budget of $1,125,000. The company wants to maintain a target capital structure that is 20% debt and 80% equity. The company forecasts that its net income this year will be $2,000,000. If the company follows a residual distribution model and pays all distributions as dividends, what will be its payout ratio? 13-3 Dividend Payout Wei Corporation expects next year's net income to be $15 million. The firm's debt ratio is currently 40%. Wei has $12 million of profitable investment opportunities, and it wishes to maintain its existing debt ratio. According to the residual distribution model (assuming all payments are in the form of dividends), how large should Wei's dividend payout ratio be next year