Using the 'Empirical Form' of Lintner's Model of Dividend Formulation

question 17

Essay

Using the 'empirical form' of Lintner's model of dividend formulation together with the information provided below determine the long- run payout ratio of Maxwell's Limited.
Historical data for Maxwell's Limited Using a regression analysis,an analyst estimates the following additional variables:
a = 24.8
b = 0.2589
c = - 0.5481
What is the long- run payout ratio?

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