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Question
Mom's Apple Pies (MAP) earned $500,000 this year. The company follows the residual dividend policy when paying dividends. MAP has determined that it needs a total of $600,000 for investment in capital budgeting projects this year. If the company's debt/asset ratio is 40 percent, what will its dividend payout ratio be this year? MAP has no preferred stock.
a. 40%
b. 28%
c. 72%
d. 48%
e. 52%
Answer
This answer is hidden. It contains 1 characters.
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