What capital outlays are planned for the coming year

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1. Clynne Resources expects earnings this year to be $2 per share. Clynne plans to pay a dividend of $0.70 for the year. During the year Clynne expects to borrow $10 million in addition to its already outstanding loan balances. Clynne has 10 million shares of common stock outstanding.

a. If all capital outlays are funded from retained earnings and new borrowings and if Clynne follows a residual dividend policy, what capital outlays are planned for the coming year?

b. What is Clynne's target capital structure given these assumptions?

2. Visit the following Web site and complete the tutorial on cash dividends, stock dividends, stock splits, and reverse stock splits. (https://www.e-analytics.com)

Reference no: EM131336715

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