The prospectus of a new firm stated that the firm will have a 50%

| June 11, 2016

Question
The prospectus of a new firm stated that the firm will have a 50% dividend payout policy. After the float, the share register reveals that the firm has attracted a mixed class of shareholders with different tax brackets and the largest shareholder group is the superannuation funds who collectively hold 40% of the shares. Superannuation funds prefer a 100% payout policy. What should be the firms payout ratio? (Answer in percentage)

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