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
35%
Net income (NI)
$6,500
A) 18.23%
B) 20.25%
C) 22.50%
D) 25.00%
E) 27.50%
Correct Answer:
Verified
Correct Answer:
Verified
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