Puckett Products is planning for $1.4 million in capital expenditures next year. Puckett's target capital structure consists of 35% debt and 65% equity. If net income next year is $2.1 million and Puckett follows a residual distribution policy with all distributions as dividends, what will be its dividend payout ratio? Round your answer to two decimal places.

Puckett Products is planning for $1.4 million in capital expenditures next year. Puckett's target capital structure consists of 35% debt and 65% equity. If net income next year is $2.1 million and Puckett follows a residual distribution policy with all distributions as dividends, what will be its dividend payout ratio? Round your answer to two decimal places.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter15: Distributions To Shareholders: Dividends And Repurchases

Section: Chapter Questions

Problem 1P

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