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…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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%