Dentaltech Inc

question 61

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) 75.4%
• B) 86.7%
• C) 58.8%
• D) 88.2%
• E) 89.0%

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Definitions:

Accounts Payable

The total sum a business must pay to its suppliers or creditors for products and services obtained on credit.

Inventory

Goods and materials that a business holds for the ultimate goal of resale, production, or utilization in manufacturing.

Receivable Turnover

A financial metric indicating how efficiently a company collects revenue from its credit customers by measuring the number of times average accounts receivable are collected during a period.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a specific period, indicating the efficiency of inventory management.