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Grandin Inc

Question 41

Multiple Choice

Grandin Inc.is evaluating its dividend policy.It has a capital budget of $625,000, and it wants to maintain a target capital structure of 60% debt and 40% equity.The company forecasts a net income of $475,000.If it follows the residual dividend policy, what is its forecasted dividend payout ratio?


A) 40.61%
B) 42.75%
C) 45.00%
D) 47.37%
E) 49.74%

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