Dentaltech Inc

question 45

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? ​

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

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Definitions:

Normal Distribution

A statistical distribution where the data forms a symmetrical bell-shaped curve, with the mean, median, and mode all equal and in the center.

Standard Normal

A special case of the normal distribution where the mean is 0 and the standard deviation is 1.

10th Percentile

The value below which 10% of observations in a data set fall.

Z Distribution

A normal distribution with a mean of zero and a standard deviation of one, also known as a standard normal distribution.