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Business, 14.06.2021 15:50 charlesgtro7066

Purple Hedgehog Forestry Inc. is expected to generate $200,000,000 in net income over the next year. Purple Hedgehog Forestry has forecasted a capital budget of $85,000,000, and it wishes to maintain its current capital structure of 70% debt and 30% equity. Required:
What will Purple Hedgehog Forestry's dividend payout ratio be if it follows a residual dividend policy?

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Purple Hedgehog Forestry Inc. is expected to generate $200,000,000 in net income over the next year....
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