Maintains debt-equity ratio

Assignment Help Financial Management
Reference no: EM131056270

Jaguar, Inc. maintains a debt-equity ratio of .60 and follows a residual dividend policy. The company has after-tax earnings of $3,100 for the year and needs $3,000 for new investments. What is the total amount Jaguar will pay out in dividends for this year? Show your work.

Reference no: EM131056270

Questions Cloud

What is the value of the firm-debt-to-equity ratio : You are going to value Lauryn’s Doll Co. using the FCF model. After consulting various sources, you find that Lauryn has a reported equity beta of 1.7, a debt-to-equity ratio of .7, and a tax rate of 40 percent. Assume a risk-free rate of 3 percent a..
How would ben franklin view leisure : Leisure can be viewed as the sole purpose in life or the moments outside of one's sole purpose in life. Of course, there are many places in between those viewpoints. How would Ben Franklin view leisure? How does that line up with our working world..
Microsoft certified solutions associate : MCSA consist of these 2 classes and 1 exam: they are $2,975.00 each and are 5 days each. The exam is $200.00. Max number of students per class is 20.
Strategic planning and implementation : Choose an organisation for which there is a large amount of information available about both the industry and the firm. Small private companies can be used but are not usually a good idea. You may not choose companies which feature in the large ca..
Maintains debt-equity ratio : Jaguar, Inc. maintains a debt-equity ratio of .60 and follows a residual dividend policy. The company has after-tax earnings of $3,100 for the year and needs $3,000 for new investments. What is the total amount Jaguar will pay out in dividends for th..
Highly related diversification strategy : A particular firm is owned by members of a single family. Most of the wealth of this family is derived from the operations of this firm, and the family does not want to "go public" with the firm by selling its equity position to outside investors. Wi..
Governmental accounting guidelines and rubric : The first final project for this course is the creation of an accounting workbook and accompanying informational report to taxpayers. Governments are unique in that most of their revenue comes from taxes and fees imposed upon the citizens. It is t..
Calculate the number of units of finished goods : Dakota Fan, Inc., manufactures an inexpensive household fan that it sells to retailers for $25 per unit. All sales are on account, with 30 percent of sales collected in the month of sale and 70 percent collected in the following month. Determine the ..
Compare treatment of slavery and african-american characters : Write a well-developed essay (1,000 words) in response to the following topic: Compare the treatment of slavery and African-American characters in Uncle Tom's Cabin and Beloved. Support your claims using specific passages from the text.

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the firms operating and cash cycles

Using the information below, calculate the firm’s operating and cash cycles.

  What is the duration if the yield to maturity

Find the duration of a 6% coupon bond making annual coupon payments if it has three years until maturity and a yield to maturity of 7.9%. What is the duration if the yield to maturity is 11.9%? (Do not round intermediate calculations. Round your answ..

  Find the duration to estimate the new price of the bond

Consider a 5.4 percent coupon bond with nine years to maturity and a current price of $1,055.40. Suppose the yield on the bond suddenly increases by 2 percent. Find the duration to estimate the new price of the bond. And calculate the new bond price.

  How fast were we approaching each other at that instant

How fast were we approaching each other at that instant? (Give your answer to the nearest integer.)

  Assuming no dividends are paid and no stock is issued

The Digby's balance sheet has $119,413,000 in equity. Further, the company is expecting $3,000,000 in net income next year. Assuming no dividends are paid and no stock is issued, what would their Book Value be next year?

  What is the payback period for the above set of cash flows

Consider the following cash flows: Year Cash Flow 0 –$6,000 1 1,750 2 3,300 3 1,550 4 1,250 what is the payback period for the above set of cash flows?

  Promises to generate cash flow

At a Discount Rate of 9.5%, a plot of land that promises to generate a cash flow of $ 12,000 per year forever Is worth:

  Appropriate measure to use than net present value

Despite shortcomings of the internal rate of return in some situations, why do most financial managers use IRR along with NPV when evaluating projects? Is there a situation in which IRR might be more appropriate measure to use than Net present value?

  What is the value of the warrants

CWI is considering whether to raise $1 billion by issuing a unit consisting of $1 billion- 7.5%-10 year subordinated debentures ($1,000 face value each) and 14.71 detachable warrants, each entitling the holder to purchase a share of CWI for $68 payab..

  Flight safety that has led to high equity risk at premium

An article in the Wall Street Journal in 2012 described investors' behavior since 2000 as a "flight safety that has led to a high equity risk at premium". What does "flight to safety" means? In this situation, which types of assets are investors like..

  Pharmaceutical company that has developed new drug

You work for a pharmaceutical company that has developed a new drug. The patent on the drug will last 17 years. You expect that the drug's profits will be $5 million in its first year and that this amount will grow at a rate of 2% per year for the ne..

  Expected return circuit

Expected Return Circuit City Stores (CC) recently paid a $.21 dividend. The dividend is expected to grow at a 23.50 percent rate. At the current stock price of $8.46, what is the return shareholders are expecting?

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