Cabrera Construction has a capital budget of $2,300,000. The company wants to maintain a target capital structure that consists of 70 percent debt and 30 percent common equity. The company forecasts that its net income this year will be $800,000. If the company follows a residual dividend policy, what will be its payout ratio?

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The Answer of Cabrera Construction has a capital budget of $2,300,000. The company wants to maintain a target capital structure that consists of 70 percent debt and 30 percent common equity. The company forecasts that its net income this year will be $800,000. If the company follows a residual dividend policy, what will be its payout ratio?

Cabrera Construction Has a Capital Budget of $2,300,000