User Account

All Pages

How much external equity will the company require

Assignment Help Finance Basics
Reference no: EM13270534

Pierre Imports has a capital budget of $20 million. It wants to maintain a capital structure of 45 percent debt and 55 percent equity. This year it expects net income of $8 million. The company has 30 million authorized shares, and 10 million are outstanding. Last year the company paid a dividend of $0.30 per share.
a. How much equity is required?
b. How much external equity does the company need to raise if it follows a residual dividend policy?
c. How much external equity will the company require if it pays the same dividend as last year?

Reference no: EM13270534

Questions Cloud

What is the mass of the second ball : Two metal balls are hung from strings. The first ball, 0.14 kg, is pulled to the side and released, What is the mass of the second ball
What is the maximum growth rate for the firm : Given this, what is the maximum growth rate for the firm if it has net income of $12,100, total equity of $94,000, total assets of $156,000, and a 40 percent dividend payout ratio?
The law of dulong also petit predicts a molar heat capacity : The specific heat of an unknown metal is found to be 0.233 J/K g. The Law of Dulong and Petit predicts a molar heat capacity of 26 J/K mol. Use this law to estimate the molar mass of the metal.
Determine the laplace transform ys of the step response : consider a continuos LTI system with step response given by ys(t) = tu(t) - (t - 2)u(t - 2). A. Determine the laplace transform X(s) of the input signal x(t) = u(t). B. Determine the Laplace transform Ys(s) of the step response.
How much external equity will the company require : How much external equity will the company require if it pays the same dividend as last year?
Explain the amount of heat transferred from the water : A 486 mL sample of water was cooled from 50.0°C to 10.0°C. Assuming a specific heat of 4.184 J/K g and a density of 1.00 g/mL, find the amount of heat transferred from the water to the surroundings.
Determine the output y if the input to the system is given : Determine the output y(t) if the input to the system is given by x(t) = u(t) - u(t-2) using complex-domain (not time-domain) analysis techniques.
Calculate the maximum doppler shift seen at x-band : An interplanetary spacecraft far beyond Earth's orbit communicates with an equatorial ground station on the Earth. Calculate the maximum Doppler shift seen at X-band (8.4 GHz) due just to the Earth's revolution around the Sun and Earth's rotation ..
The hypothetical metal has a face-centered cubic unit cell : A hypothetical metal has a face-centered cubic unit cell with the edge length of 4.566 Å. Calculate the radius of the metal atom.

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine the expected activity lengths and variances

Use the activity table below to determine the expected activity lengths and variances for each of the activities, using the beta distribution.

  Segregation of duties

All Clear Corporation is a large manufacturer of custom draperies. In all, the company has seven divisions spread out across the country. Furthermore, the company has adopted a policy of issuing digital certificates for all corporation transactions,

  Finance questions for practice

Interest rates on 1-year, 2-year, and 3-year Treasury bills are 5% , 6% , and 7%, respectively. Suppose that the pure expectations theory holds and that the market is in equilibrium. Determine which of the following statements is most correct?

  Explain project acceptance or rejection decision and reasons

Explain Project acceptance or rejection Decision and reasons there of and Draw a cash flow diagram for this project

  Create the statement of cash flows

The comparative balance sheet of Westmont Industries at December 31, 2007, reported the following, Create the statement of cash flows of Westmont Industries for the year ended 31, 2007,

  Calculate the payback period

The new clubs will also require an increase in net working capital of $1,300,000 that will be returned at the end of the project. The tax rate is 32 percent, and the cost of capital is 10 percent.

  Costs of financial distress

The Salad Oil Storage Company (SOS) has financed a large part of its facilities with the long-term debt. There is the significant risk of default, but company isn't on the ropes yet. Describe

  Calculate the accounting break-even point

Calculate the base-case cash flow and NPV. What is the sensitivity of NPV to changes in the sales figure? Explain what your answer tells you about a 500-unit decrease in projected sales.

  What is the accumulated amount of the annuity

What is the accumulated amount of the annuity. $2500 annually at 6% for 10 years. Round to nearest cent.

  Computation of yield to maturity and decision making

Computation of Yield to Maturity and decision making and You are considering Dell Company and MCI Company bonds

  Calculate total interest cost

Suppose you are considering to buy a building for $40,000, and you have $10,000 to apply as a down payment. You may borrow the remainder under the following terms:

  How can separate taxation of corporate income be justified

Explain how corporate income could be explained under a comprehensive income tax without recourse to a corporate income tax? How can separate taxation of corporate income be justified?

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