Reference no: EM131188172
As a financial manager for WillPower, Inc, you have the following information:
a) The company follows a residual dividend policy;
b) The total capital budget for next year is likely to be $5,000,000;
c) The forecasted level of earnings next year is $8,000,000;
d) The target or optimal capital structure is a debt ratio of 50%;
Please answer the following questions:
a. What will be the amount funded with equity for the project ? (Keep the answer to a whole number. Example of answer format: $1,000,000)
b. Compute the amount of the dividend . (Keep the answer to a whole number. Example of answer format: $1,000,000)
c. Compute the dividend pay-out ratio . (Keep the answer to two decimals. Example of the answer format: 55.55%)
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: As a financial manager for WillPower, Inc, you have the following information: What will be the amount funded with equity for the project ? Compute the amount of the dividend .
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