Financial Accounting Portland Plastics Inc, has the following data. If itfollows the residual dividend policy, what is itsforecasted dividend payout ratio?Capital budget $12,500% Debt40%Net income (NI) $9,250a. 19.68%b. 23.65%c. 18.92%d. 17.22%e. 15.70%

Step 1: Define Dividend Payout RatioThe dividend payout ratio is a financial ratio that compares the…

Answered: Portland Plastics Inc, has the…

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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What will its dividend payout ratio on these financial accounting question?
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Portland Plastics Inc, has the following data. If it follows the residual dividend policy, what is its forecasted dividend payout ratio? Capital budget $12,500 % Debt 40% Net income (NI) $9,250 a. 19.68% b. 23.65% c. 18.92% d. 17.22% e. 15.70%