Determine the companys dividend per share for next year

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Problem

National Aluminum Co. (NATCO) is a public company that manufactures and sells aluminum in the United States and Europe. The company's products are used in transportation, construction, energy, manufacturing, aerospace and electronics industries. The company plans to undertake a massive capital investment project next year that costs $12 million. The company's target capital structure is 60% equity and 40% debt. It projects net income of $15 million. The total number of shares outstanding is 2 million. NATCO follows a residual distribution policy with all distributions as dividends. Get the instant assignment help. Determine the following: i. the company's dividend per share for next year ii. the company's forecasted dividend payout ratio iii. the company's earnings per share iv. the amount of equity financing and long-term debt needed to fund the project.

Reference no: EM133926350

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