Calculate the maximum investment funds

Assignment Help Business Management
Reference no: EM131177731

Williams Co. predicts that earnings in the coming year will be $95 million. There are 15 million shares, and Williams maintains a debt-equity ratio of 2.5.

a) Calculate the maximum investment funds available without issuing new equity and the increase in borrowing that goes along with it.

b) Suppose the firm uses a residual dividend policy. Planned capital expenditures total $150 million. Based on this information, what will the dividend per share be? What is the payout ratio?

c) In part (b), how much borrowing will take place? What is the addition to retained earnings?

d) Suppose Williams plans no capital outlays for the coming year. What will the dividend be under a residual policy? What will new borrowing be?

Reference no: EM131177731

Questions Cloud

What are the equivalence classes of f and of t : Show that the relation of logical equivalence on the set of all compound propositions is an equivalence relation. What are the equivalence classes of F and of T?
East hills family support center : The East Hills Family Support Center serves families of East Hills with children ages 0-5.  Enrollment in the East Hills Family Support Center requires parent's active participation in parent education and child development.  In addition to core F..
Compute the eoq for this product : Compute the EOQ for this product.- what is the minimum reorder point that will allow the wholesaler to provide 100 percent customer service? Assume 5 operating days per week.
Show that r is an equivalence relation : Let R be the relation on the set of all URLs (or Web addresses) such that xRy if and only if the Web page at x is the same as the Web page at y. Show that R is an equivalence relation.
Calculate the maximum investment funds : Williams Co. predicts that earnings in the coming year will be $95 million. There are 15 million shares, and Williams maintains a debt-equity ratio of 2.5. a) Calculate the maximum investment funds available without issuing new equity and the inc..
Why is there a need for mitosis and meiosis : Do Mendelian rules of inheritance apply to all traits? Why or why not? Discuss an instance where Mendel's rules may not be applicable and what would have happened had Mendel chosen a trait that does not follow the rules of Mendelian inheritance.
What is the implied cost of backordering a customer : What is the implied cost of backordering a customer? -  What would be the recommended order quantity for a 195HR14 tire with an annual demand of 1,000?
Question regarding the negative communication : On the TV show "The Apprentice," Donald Trump seemed to relish announcing, "You're fired" to losing contestants. But most employers recoil from having to tell employees that they will be "downsized."
Inventory models to address lou carlsons questions : Use inventory models to address Lou Carlson's questions. Support your recommendations with cost justification.

Reviews

Write a Review

Business Management Questions & Answers

  What is the meaning of iq in a large populationif we say

what is the meaning of iq in a large populationif we say that the distribution of iq in a large population follows a

  Explain in detail how the ethical culture of nonprofit

Explain in detail how the ethical culture of this nonprofit organization contributes to its organizational strategy.

  Business management and leadership-organizingtask pretend

business management and leadership-organizingtask pretend that you have been asked to redesign the business structure

  Identifies each link in the supply chain and the purpose

Write a 700- to 1,050-word paper (APA Format) that identifies each link in the supply chain and the purpose and value in each. For example, if the shoe industry were to be chosen, the supply chain might look something like:

  Leadership and management - whats the differencein this

leadership and management - whats the difference?in this solution learn about the differences between leadership and

  Management team and operations

Describe who will be the CEO and his/her qualifications/experiences in the product/service industry, including both education and work and other relevant experiences.

  Characteristics of process and outcome evaluation

Summarize the characteristics of process and outcome evaluation. Provide two examples of each type of evaluation. This is for a human service class so it has to be in an human service view point.

  The relationship between objectives and goals

Discuss the relationship between objectives and goals?

  By using the irac method

By using the IRAC method- Sally and Tom choose to go into business selling discounted merchandise through their website e-buy

  Situations of employee poor behavior

Create 3 fictional scenarios in which an employer would have to deal with any of the following situations of employee poor behavior on the job, Substance Abuse, Sexual Harassment, Fighting, Work Family Conflicts, or Email (or Internet) abuse.

  Question regarding the company pollution prevention efforts

How important is corporate philosophy to a company's pollution prevention efforts? Please use an example of one or morecompanies to support your position.

  How do you avoid personality bias in the work place

How do you avoid personality bias in the work place and how do you create positive work relationships with those that you may have issues with?

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