National Co. follows a strict residual dividend policy. The company is forecasting that its net income will be P500,000,000 this year. The company anticipates that its capital budget will be P300,000,000. The company has a target capital structure that consists of 50 percent equity and 50 percent long-term debt. What is the company’s anticipated dividend payout ratio?
National Co. follows a strict residual dividend policy. The company is forecasting that its net income will be P500,000,000 this year. The company anticipates that its capital budget will be P300,000,000. The company has a target capital structure that consists of 50 percent equity and 50 percent long-term debt. What is the company’s anticipated dividend payout ratio?
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter15: Distributions To Shareholders: Dividends And Repurchases
Section: Chapter Questions
Problem 1P
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National Co. follows a strict residual dividend policy. The company is
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