X Ch 15: Assignment - Distributions to Shareholders: Dividends and Repurchases 2. II! The resictual dend policy approach to dividend policy is based on the theory that a firm's optimal dividend distribution policy is a function of the firm's target capital structure, the investment opportunities available to the firm, and the availability and cost of external capital. The firm makes ostributions based on the residual earings. Red Bison Petroleum Inc. is expected to generate $200,000,000 in net income over the next year. Red Bison Petroleum bas forecasted a capital budget of $88,000,000, and it wishes to maintain its current capital structure of 70% debt and 30% equity. 304 E Delt if the company follows a strict residual dividend policy and makes distributions in the form of dividends, what is its expected dividend payout ratio for this year? 65.10% 82.46% 36.80 59.44% Grade It Now Save & Continue Continue without saving MacBook Pro