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Dentaltech Inc. projects the following data for the coming year. If the firm follows the residual dividend model and also maintains its target capital structure, what will its dividend payout ratio be?
Note Disclosure
An explanatory or descriptive information included within financial statements, usually providing details about the basis of preparation, accounting policies, and specifics of certain account balances.
Capitalize
The accounting practice of recording a cost or expense on the balance sheet for the purposes of delaying full recognition of the expense over time through depreciation or amortization.
Depreciate
To allocate the cost of a tangible asset over its useful life, reflecting the decline in the asset's value due to use and wear and tear.
Financial Statements
Reports that summarize the financial performance, position, and cash flows of a business over a specific period of time.
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