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Dentaltech Inc. projects the following data for the coming year. If the firm follows the residual...

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Finance

Dentaltech Inc. projects the following data for the coming year.If the firm follows the residual dividend model and also maintainsits target capital structure, what will its dividend payout ratiobe?

EBIT$2,600,000Capital budget$1,325,000
Interest rate10%% Debt40%
Debt outstanding$4,900,000% Equity60%
Shares outstanding5,000,000Tax rate25%

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