Question: Wolfpack Multimedia follows a strict residual dividend policy. Wolfpack forecasts that its net income will be $ 1 2 million this year. The company has

Wolfpack Multimedia follows a strict residual dividend policy. Wolfpack forecasts that its net income will be $12 million this year. The company has no depreciation expense so its net cash flow is $12 million, and its target capital structure consists of 70 percent equity and 30 percent debt. Wolfpacks capital budget is $10 million. What is the companys dividendpayoutratio?

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