User Account

All Pages

Combinations of variables-santano company

Assignment Help Finance Basics
Reference no: EM132481742

The capital budget forecast for the Santano Company is $725,000. The CFO wants to maintain a target capital structure of 45% debt and 55% equity, and it also wants to pay dividends of $500,000. If the company follows the residual dividend policy, how much income must it earn, and what will its dividend payout ratio be?

Notes: With some combinations of variables, the residual policy may result in zero dividends and a zero payout ratio. These outcomes are noted in the topic [TOP] field if applicable.

Net Income Payout

a. $898,750 55.63%

b. $990,872 61.34%

c. $1,040,415 64.40%

d. $943,688 58.41%

e. $1,092,436 67.62%

Reference no: EM132481742

Questions Cloud

Seller and buyer need to pay for separate title policies : Your spouse wants to make sure that upon the death of either spouse the property will go to the surviving spouse and asks you if a will is required
What is the amount of depletion that should be recorded : Frederick Mining Company owns a large parcel of land which costs $950,000. What is the amount of depletion that should be recorded
How much would the firm have to sell : How much would the firm have to sell? (Enter your answer in dollars not in millions. Do not round intermediate calculations and round your final answer)
What are two perspectives a business can use in assessing : What are two perspectives a business can use in assessing each segment's attractiveness in terms of its potential for targeting?
Combinations of variables-santano company : The capital budget forecast for the Santano Company is $725,000. The CFO wants to maintain a target capital structure of 45% debt and 55% equity
Estimate IBMs weighted average cost of capital : IBMs market value of debt is approximately $12.08 billion and its total market value of equity is $143.48 billion. Estimate IBM weighted average cost of capital
How can you guarantee validity in your research study : How can you guarantee validity and feasibility in your research study with a mix method? (APA Style, no Abstract needed, 4 paragraphs, Citations and References.
What specific questions would you ask team during debriefing : You have been asked to be a peer reviewer for a team of nurse researchers who are conducting a phenomenological study of the experiences of physical abuse.
Assets and current liabilities are expected to grow : Suppose that Wind Em Corp. currently has the balance sheet shown below, and that sales for the year just ended were $6.5 million.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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