Lambda Limited has a target debt-equity ratio of 1:2. The company anticipates that its capital...
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Lambda Limited has a target debt-equity ratio of 1:2. The company anticipates that its capital budget for the accounting year 2020-21 (upcoming year) will be Rs. 900 crores. If Lambda reports net income (profit after tax) of Rs. 1000 crores during the accounting year 2019-20 and it follows a residual dividend payout policy, what will be its dividend payout ratio for the current year? Interpret your answer
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