Dentaltech Inc A) 372%
B) 39

question 48

Multiple Choice

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? $$\begin{array} { l c l c } \text { EBIT } & \$ 2,000,00 & \text { Capital budget } & \$ 850,000 \\\text { Interest rate } & 10 \% & \% \text { Debt } & 40 \% \\\text { Debt outstanding } & \$ 5,000,00 & \% \text { Equity } & 60 \% \\\text { Shares outstanding } & 5,000,000 & \text { Tax rate } & 40 \%\end{array}$$

• A) 37.2%
• B) 39.1%
• C) 41.2%
• D) 43.3%
• E) 45.5%

---

Definitions:

360-degree Feedback

A performance appraisal method where an employee is evaluated by feedback from various sources, including peers, supervisors, subordinates, and sometimes clients.

Graphic Rating Scale

A method of evaluation that uses a visual scale to measure attitudes, feelings, or performance.

Interviewer Illusion

A bias that occurs during job interviews, where the interviewer overestimates their ability to evaluate the interviewee accurately.

Personality Traits

Characteristic patterns of thoughts, feelings, and behaviors that make an individual unique.