Portland Plastics Inc $$\begin{array} { l c } \text { Capital budget } & \$ 12,500 \\\% \text { Debt } & 40 \% \\\text { Net income (NI) } & \$ 11,500\end{array}$$

question 62

Multiple Choice

Portland Plastics Inc. has the following data. If it follows the residual dividend model, what is its forecasted dividend payout ratio? $$\begin{array} { l c } \text { Capital budget } & \$ 12,500 \\\% \text { Debt } & 40 \% \\\text { Net income (NI) } & \$ 11,500\end{array}$$

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

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Definitions:

Leadership Roles

Positions or functions where an individual guides, influences, or directs a group towards achieving goals.

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The obligation of individuals or organizations to account for their activities, accept responsibility for them, and disclose the results in a transparent manner.