If the company follows a strict residual dividend policy and makes distributions in the form of dividends, what is its expected dividend payout ratio for this year?

89%

Explanation:

Calculate the dividend pay-out ratio.

Company has a capital structure of 30% which means that 30% of the capital budget of $88 million has to come from retained earnings;

= 30% * 88

= $26.4 million will come from retained earnings

The amount left for dividends will therefore be;

= 240 - 26.4

= $213.6 million

Dividend Payout ratio;

= Dividend / Net income

= 213.6/240

= 89%

b. a single paragraph.

a paragraph is a series of sentences that are organized and make sense, and are all related to a single topic . almost every piece of writing you do that is longer than a few sentences should be organized into paragraphs. this is because paragraphs show a reader where the subdivisions of an essay begin and end, and thus the reader see the organization of the essay into subjects in order to be able to understand its main points.

answer; rapid growth in buyer demand and high buyer switching cost;