Petersen Co. has a capital budget of $ 910 . The company wants to maintain a target capital structure that is 65 percent debt and remaining percent is equity. The company forecasts that its net income this year will be $ 809 . If the company follows a residual distribution policy (with all distributions in the form of cash dividends), what will be its payout ratio? Enter your answer to the nearest .1%. Enter your answer as a whole number, thus 25.1% would be 25.1 not .251. Do not use % signs in your answer. Your Answer:

Petersen Co. has a capital budget of $ 910 . The company wants to maintain a target capital structure that is 65 percent debt and remaining percent is equity. The company forecasts that its net income this year will be $ 809 . If the company follows a residual distribution policy (with all distributions in the form of cash dividends), what will be its payout ratio? Enter your answer to the nearest .1%. Enter your answer as a whole number, thus 25.1% would be 25.1 not .251. Do not use % signs in your answer. Your Answer:

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter12: The Cost Of Capital

Section: Chapter Questions

Problem 13P

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