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New Orleans Builders Inc  Capital budget $7,500% Debt 40% Net income (NI) $7,500\begin{array} { l r } \text { Capital budget } & \$ 7,500 \\\% \text { Debt } & 40 \% \\\text { Net income (NI) } & \$ 7,500\end{array}

Question 16

Multiple Choice

New Orleans Builders Inc.has the following data.If it follows the residual dividend model,what is its forecasted dividend payout ratio?  Capital budget $7,500% Debt 40% Net income (NI)  $7,500\begin{array} { l r } \text { Capital budget } & \$ 7,500 \\\% \text { Debt } & 40 \% \\\text { Net income (NI) } & \$ 7,500\end{array}
?


A) 46.80%
B) 30.00%
C) 43.20%
D) 32.00%
E) 40.00%

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