i wont to this question answer general accounting question ABC Industries has a capital budget of $4,000,000with a target capital structure of 30% debt and 70%equity. Expected dividends are $800,000. Calculatethe dividend payout ratio under a residual dividendpolicy.

Step 1: DefinitionDividend Payout Ratio: The dividend payout ratio is the percentage of net income…

Answered: ABC Industries has a capital budget of…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter13: Capital Structure Concepts

Section: Chapter Questions

Problem 6P

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ABC Industries has a capital budget of $4,000,000 with a target capital structure of 30% debt and 70% equity. Expected dividends are $800,000. Calculate the dividend payout ratio under a residual dividend policy.