With a 50% debt ratio and 2,000,000 worth of capital, the company posted dividends amounting to one fifth of retained earnings. Retained earnings is one fourth of total assets. EBIT is 1,000,000 and tax is at 20%. How much is the payout ratio of the company? Two decimal points, decimal or percent.
With a 50% debt ratio and 2,000,000 worth of capital, the company posted dividends amounting to one fifth of retained earnings. Retained earnings is one fourth of total assets. EBIT is 1,000,000 and tax is at 20%. How much is the payout ratio of the company? Two decimal points, decimal or percent.
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter6: Accounting For Financial Management
Section: Chapter Questions
Problem 6P: In its most recent financial statements, Del-Castillo Inc. reported 70 million of net income and 900...
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