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Resi Inc expects net income of P800000 for the next fiscal year Its targeted and current capital structure is 40 debt and 60 common equity The director of capital budgeting has determined that

Resi, Inc. expects net income of P800,000 for the next fiscal year. Its targeted and current capital structure is 40% debt and 60% common equity, The director of capital budgeting has determined that the optimal capital spending for next year is P1,200,000. If Resi follows a strict residual dividend policy, what is the expected dividend payout ratio for next year?
A. 80.0%       C. 40.0%
B. 66.7%       D. 10.0% 

Jun 20 2021 View more View Less

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