National Co. follows a strict residual dividend policy. The company is forecasting that its net income will be P500,000,000 this year. The company anticipates that its capital budget will be P300,000,000. The company has a target capital structure that consists of 50 percent equity and 50 percent long-term debt. What is the company’s anticipated dividend payout ratio?
National Co. follows a strict residual dividend policy. The company is forecasting that its net income will be P500,000,000 this year. The company anticipates that its capital budget will be P300,000,000. The company has a target capital structure that consists of 50 percent equity and 50 percent long-term debt. What is the company’s anticipated dividend payout ratio?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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National Co. follows a strict residual dividend policy. The company is
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