LA Moving Company Has the Following Data,dollars in Thousands $$\begin{array} { l r } \text { Capital budget } & \$ 6,700 \\\% \text { Debt } & 45 \% \\\text { Net income (NI) } & \$ 7,250\end{array}$$

question 46

Multiple Choice

LA Moving Company has the following data,dollars in thousands.If it follows the residual dividend model,what will its dividend payout ratio be? $$\begin{array} { l r } \text { Capital budget } & \$ 6,700 \\\% \text { Debt } & 45 \% \\\text { Net income (NI) } & \$ 7,250\end{array}$$
?

• A) 46.71%
• B) 60.97%
• C) 36.88%
• D) 44.26%
• E) 49.17%

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