Bauer Brewing Co. has the following data (dollars in thousands). If it follows the residual dividend model, what will its dividend payout ratio be? Capital budget $15,000 % Debt 55% Net income (NI) $9,000 a. 25.00% b. 30.00% c. 45.00% d. 60.00% e. 75.00%

EBK CONTEMPORARY FINANCIAL MANAGEMENT
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Chapter13: Capital Structure Concepts
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What will its dividend payout ratio on these financial accounting question?

Bauer Brewing Co. has the following data (dollars in
thousands). If it follows the residual dividend model, what
will its dividend payout ratio be?
Capital budget $15,000
% Debt
55%
Net income (NI) $9,000
a. 25.00%
b. 30.00%
c. 45.00%
d. 60.00%
e. 75.00%
Transcribed Image Text:Bauer Brewing Co. has the following data (dollars in thousands). If it follows the residual dividend model, what will its dividend payout ratio be? Capital budget $15,000 % Debt 55% Net income (NI) $9,000 a. 25.00% b. 30.00% c. 45.00% d. 60.00% e. 75.00%
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