Problem 14-1 Residual Distribution Model Puckett Products is planning for $3.1 million in capital expenditures next year. Puckett's target capital...

Problem 14-1 

Residual Distribution Model

Puckett Products is planning for $3.1 million in capital expenditures next year. Puckett's target capital structure consists of 45% debt and 55% equity. If net income next year is $2.9 million and Puckett follows a residual distribution policy with all distributions as dividends, what will be its dividend payout ratio? Round your answer to two decimal places.