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AALE Inc has a capital budget of $625.000, and it wants to maintain a target...

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Accounting

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AALE Inc has a capital budget of $625.000, and it wants to maintain a target capital structure of 40% debt and 60% equity. The company forecasts a net income of $479,764. If it follows the residual dividend policy, what is its forecasted dividend payout ratio? Residual Distribution Formula Distribution - Net Income - (Target equity ratio)(Total capital budget) Enter your answer rounded to 2 decimal places, and do not enter any symbols such as $, % or commas. Enter the percentage value, not the decimal (eg. 12.32 not 0.1232)

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