Altamonte telecommunications has a target capital structure that consists of 55% debt and 45% equity. the company anticipates that its capital budget for the upcoming year will be $1,000,000. if altamonte reports net income of $1,100,000 and it follows a residual dividend payout policy, what will be its dividend payout ratio? round your answer to two decimal places.

59.09%

Explanation:

Dividend paid:

= Net income - (Weight of equity × Capital budget)

= 1,100,000 - (0.45 × 1,000,000)

= $650,000

Hence,

Dividend payout ratio = Dividend ÷ net income

                                     = $650,000 ÷ 1,100,000

                                     = 59.09%(Approx).(or 0.5909 approx).

Therefore, the dividend payout ratio is 59.09%.

you don't if you paid you paid. it's like if i bought a computer and used it then i say idon't want it anymore so im gonna return it. you can't. unlkess you have your reciept

answer(b) revenue account which increases;