Question regarding dividend payout ratio

Assignment Help Accounting Basics
Reference no: EM13115775

The Wei Corporation expects next year's net income to be $15 million. The firm's debt ratio is currently 40 %. Wei has 12 million of profitable investestment opportunites, and it wishes to maintain its existing debt ratio. According to the residual distribution model (assumiming all payments are in the form of dividends), how large should Wei's dividend payout ratio be next year?

Reference no: EM13115775

Questions Cloud

Identify the magnitude and direction of the electric field : Identify the magnitude and direction of the electric field at a point midway between a -8.0 uC and a +5.8 uC charge 8.0 cm away. Assume no other charges are nearby.
Statistical sampling-non-statistical sampling : Which is better, statistical sampling or non-statistical sampling? Why? Should Generally Accepted Auditing Standards prescribe specific risk levels that auditors must use? Why or why not?
Find probability to get red gumballs : Balls that have been thoroughly mixed. Sue and Jim, each, purchased one gumball. What is the likelihood both Sue and Jim get red gumballs?
Astronaut comes into contact with shuttle : The astronaut pushes on the satellite, giving it a speed of 0.25 directly away from the shuttle. Seven-and-a-half seconds later the astronaut comes into contact with shuttle.
Question regarding dividend payout ratio : The Wei Corporation expects next year's net income to be $15 million. The firm's debt ratio is currently 40 %. Wei has 12 million of profitable investestment opportunites, and it wishes to maintain its existing debt ratio.
Which food preparation methods might make foods : Provide advice to someone traveling in a third world country as to what foods and drinks it would be wise to avoid and as to which food preparation methods might make foods safe to eat or drink to avoid bacteria.
Find probability the game was played at night : The team wins 55% of their night games, and 85% of their day games. According to today's newspaper, they won yesterday. What is the probability the game was played at night?
Academic approach to stock price : The stock has a beta equal to 0.75. The risk-free rate is 5.0%, and the market risk premium is 5.5%. The stock's dividend is expected to grow at some constant rate g. The stock currently sells for $50 a share. Assume that the market is in equilibr..
What is the genotypic and phenotypic ratio in the offspring : What is the genotypic and phenotypic ratio in the offspring produced by the cross BbCc x bbCc if B is black color, b - yellow; C- long tail. c -short tail? Assume complete dominance for the trait. Explain results of the cross using Punnett square ..

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Prepare adjusting entry and find balance in prepaid rent

Prepare the adjusting entry for December 31 st  to reflect the amount of rent expense consumed. What is balance in prepaid rent on December 31 st  after the adjusting entry has been made?

  Prepare flowchart describing the general process

You are required to prepare a flowchart describing the general process and information flows at Top Notch T-Shirt Printing.

  Determining the income tax-deduction

In 2003, Roland, who is single, purchased a personal residence for $340,000 and took out a mortgage of $200,000 on the property. In May of the current year, when the residence had a fair market value of $440,000 and Roland owed $140,000 on the mor..

  Information on journal entries to record business

On Jan 1, 2002, Frost Company acquired all of TKK Corporation's assets and liabilities by issuing 24,000 shares of its $4 par value common stock. At that date, Frost shares were selling at $22 per share. Historical cost and fair value balance shee..

  Securities markets-economy

After the events of September 11, we were without our securities markets for few days. Though, it was a difficult condition, the markets opened in a few days and we managed.

  Managers in foreign countries for national companies

What individual characteristics and qualifications should a company consider when choosing managerial candidates for foreign assignments?

  Magrath company case study

Magrath Company has an operating cycle of less than one year and provides credit terms for all of its customers, On April 1, 2011, the comany factored, without recourse, some of its accounts receivable. What are the two basic approaches to estimat..

  Accounting databases to obtain relevant data

The use of accounting databases enables researchers to obtain data to help answer their questions more efficiently. Using the FASB Codification database and other sources such as the SEC Web site as guides, answer the following questions:

  Book value-market value

Filer Manufacturing has 9.5 million shares of common stock outstanding. The current share price is $53 and the book value per share is $5.

  Writing journal entries to record issuance of bonds

On the first day of the current fiscal year, $1,000,000 of 10-year, 7% bonds, with interest payable semiannualy were sold for $1,050,000. Present entries to record the following transactions for the current fiscal year:

  Adjusting journal entries and partial balance sheet

On jan 1 07 daniels company contained these liability accts. Accts payable 42,500 Sales tax payable 6,600 Unearned service revenue 19,000 During january

  Compute the price of the bonds on their issue date

Compute the price of the bonds on their issue date. The following information is taken from present value tables:   Present value of an annuity for 10 periods at 3%..8.5302

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd