Answer:
36%
Explanation:
The computation of the dividend payout ratio is shown below:
The dividend payout ratio is
= (Dividend ÷ total net income) × 100
where,
Dividend = Net income - equity amount
The net income is $7,500,000
And, the equity amount is
= $8,000,000 × 60%
= $4,800,000
So, the dividend is
= $7,500,000 - $4,800,000
= $2,700,000
As we can see that the IRR is more than the cost of capital in case of project Project H and Project M so we take the equity amount of this two projects
Now the dividend payout ratio is
= ($2,700,000 ÷ $7,500,000) × 100
= 36%
