Dividend payout ratio and retention ratio

Assignment Help Finance Basics
Reference no: EM13788967

Q.1: You are provided the following working capital information for the Ridge Company:

Ridge Company

Account

$

   

Inventory

$12,890

Accounts receivable

12,800

Accounts payable

12,670

   

Net sales

$124,589

Cost of goods sold

99,630

Operating cycle: What is the operating cycle for Ridge Company?

Q.2: The operating cycle

Q.3. Ticktock Clocks sells 10,000 alarm clocks each year. If the total cost of placing an order is $65 and it costs $85 per year to carry the alarm clock in inventory, use the EOQ formula to calculate the optimal order size.

Q.4: The asset substitution problem occurs when

Q.5: Dynamo Corp. produces annual cash flows of $150 and is expected to exist forever. The company is currently financed with 75 percent equity and 25 percent debt. Your analysis tells you that the appropriate discount rates are 10 percent for the cash flows, and 7 percent for the debt. You currently own 10 percent of the stock.

How much are your cash flows today?

Q.6: Melba's Toast has a capital structure with 30% debt and 70% equity. Its pretax cost of debt is 6%, and its cost of equity is 10%. The firm's marginal corporate income tax rate is 35%. What is the appropriate WACC?

Q.7: According to the text, the financial plan covers a period of

Q.8: The financing plan of a firm will indicate

Q.9: Tradewinds Corp. has revenues of $9,651,220, costs of $6,080,412, interest payment of $511,233, and a tax rate of 34 percent. It paid dividends of $1,384,125 to shareholders. Find the firm's dividend payout ratio and retention ratio.

Reference no: EM13788967

Questions Cloud

Income taxes-simple rate of return on machine is closest : Jason Corporation has invested in a machine that cost $80,000, that has a useful life of eight years, and that has no salvage value at the end of its useful life. The machine is being depreciated by the straight-line method, based on its useful life...
Shareholder model of corporate governance : Explain the major differences between the shareholder model of corporate governance and the stakeholder model of corporate governance?
Balance in agees equity investment account at end of year : Agee Corporation acquired a 36% interest in Trent Company on January 1, 2015, for $520,000. At that time, Trent had 1,000,000 shares of its $1 par common stock issued and outstanding. During 2015, Trent paid cash dividends of $158,000 and thereafter ..
What are the four general categories of physical evidence : What are the four general categories of physical evidence? Briefly explain the process of marking an item of evidence for identification purposes
Dividend payout ratio and retention ratio : Tradewinds Corp. has revenues of $9,651,220, costs of $6,080,412, interest payment of $511,233, and a tax rate of 34 percent. It paid dividends of $1,384,125 to shareholders. Find the firm's dividend payout ratio and retention ratio.
Benefits and costs associated with a strategy : The Topic Paper will be on a current topic in international business. The paper should have at least four sources other than the textbook, be five pages in length (not including the bibliography), be double spaced with regular margins, and be in 1..
Prepare comparative analysis on income statement : Prepare vertical common-size financial statements, horizontal common-size financial statements, and various profitability and risk ratios.
Contrast the analysis of the standard issues : Compare and contrast the analysis of the standard used to a state using a different standard.
Present value-pv of multiple cash flows : Present value: Tommie Harris is considering an investment that pays 6.5 percent annually. How much must he invest today such that he will have $25,000 in seven years? (Round to the nearest dollar.)

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Determine the expected return on a portfolio

Suppose you are planning three stocks with the following expected dividends yields and gains, Determine the expected return on a portfolio consisting of 40% in stock A and 60 % in stock B

  Should the company increase or decrease its order size

Should the company increase or decrease its order size? Describe the optimal inventory policy for the company in terms of order size and frequency.

  What is the annual cost now

Using a week (7 days) as a base period, round the orders to nearest power of 2. If you charge the fixed trucking fee only once for deliveries that coincide what is the annual cost now?

  Full-time and part-time implications

What implications do these changes have for employee motivation and involvement in organization? What lessons must people seeking jobs learn from experiences of these employees?

  What is the minimum number of bonds

Thomasville Liquidators wants to raise $6.2 million to expand their business. To accomplish this they plan to sell 20-year, $1,000 face value, zero coupon bonds. The bonds will be priced to yield 9.5%. What is the minimum number of bonds they must..

  Determine the term bond valuation

Determine the term Bond valuation and what would this imply about the terms of the issue

  What reinvestment rate assumptions are built into the npv

what reinvestment rate assumptions are built into the npv irr and mirr methods? give an explanation other than

  Analysis of the ethical and social responsibility

Prepare an analysis of the ethical and social responsibility issues your organization must deal with as a result of being global.  Write a 1,050- to 1,400-word paper summarizing the results of the analysis. Include the following:

  What is the implied interest rate on a treasury bond

What is the implied interest rate on a Treasury bond ($100,000) futures contract that settled at 100'16? If interest increased by 1%, what would be the contract's new value?

  What three techniques are used to assess projects risk

Why should companies use a project's net cash flows rather than its accounting income when determining a project's NPV? What are the major types of project risk?

  What will be its dividend payout ratio

If net income next year is $1.5 million and Puckett follows a residual distribution policy with all distributions as dividends, what will be its dividend payout ratio? Round your answer to two decimal places.

  Need a statement showing incremental cash flows

Need a statement showing incremental cash flows over an eight year period. Need a computed payback period. NPV for the project would be nice as well (Optional)

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