Portland Plastics Inc

question 56

Multiple Choice

Portland Plastics Inc. has the following data. If it follows the residual dividend model, what is its forecasted dividend payout ratio?
Capital budget $12,500
% Debt 40%
Net income (NI) $11,500

• A) 25.36%
• B) 28.17%
• C) 31.30%
• D) 34.78%
• E) 38.26%

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