New Orleans Builders Inc.has the following data.If it follows the residual dividend model,what is its forecasted dividend payout ratio? $$\begin{array} { l r }
\text { Capital budget } & \$ 7,500 \
\% \text { Debt } & 40 \% \
\text { Net income (NI) } & \$ 7,500
\end{array}$$
?
A) 46.80%
B) 30.00%
C) 43.20%
D) 32.00%
E) 40.00%

Question

New Orleans Builders Inc.has the following data.If it follows the residual dividend model,what is its forecasted dividend payout ratio? $$\begin{array} { l r } 
\text { Capital budget } & \$ 7,500 \
\% \text { Debt } & 40 \% \
\text { Net income (NI) } & \$ 7,500
\end{array}$$
?
A) 46.80%
B) 30.00%
C) 43.20%
D) 32.00%
E) 40.00%

Quizplus · Accepted Answer

The Answer of New Orleans Builders Inc.has the following data.If it follows the residual dividend model,what is its forecasted dividend payout ratio? $$\begin{array} { l r } 
\text { Capital budget } & \$ 7,500 \
\% \text { Debt } & 40 \% \
\text { Net income (NI) } & \$ 7,500
\end{array}$$
?
A) 46.80%
B) 30.00%
C) 43.20%
D) 32.00%
E) 40.00%

New Orleans Builders Inc Capital budget $7,500% Debt 40% Net income (NI) $7,500\begin{array} { l r } \text { Capital budget } & \$ 7,500 \\\% \text { Debt } & 40 \% \\\text { Net income (NI) } & \$ 7,500\end{array} Capital budget % Debt Net income (NI) ​$7,50040%$7,500​

New Orleans Builders Inc $\begin{array} { l r } \text { Capital budget } & \$ 7,500 \\\% \text { Debt } & 40 \% \\\text { Net income (NI) } & \$ 7,500\end{array}$