What is its forecasted dividend payout ratio

Assignment Help Financial Management
Reference no: EM131558618

The projected capital budget of a corp is $1,000,000, its target capital structure is 60% debt and 40% equity, and its forecasted net income is $550,000. If the company follows a residual dividend policy, what is its forecasted dividend payout ratio?

Reference no: EM131558618

Questions Cloud

What is the offer price : Suppose a company has a pre-IPO value of 100 million, What is the offer price?
What coupon interest rate must the company set on the bonds : What coupon interest rate must the company set on the bonds in order to sell the bonds-with-warrants at $1,000?
Required rate of return on otherwise similar nonconvertible : The required rate of return on an otherwise similar nonconvertible bond is 10.00%. What is the estimated floor price of the convertible at the end of Year 2?
House in the future and recently received inheritance : Future Value. You are hoping to buy a house in the future and recently received an inheritance of $22,000.
What is its forecasted dividend payout ratio : If the company follows a residual dividend policy, what is its forecasted dividend payout ratio?
The firm to collect its accounts receivable : How many days on average does it take the firm to collect its accounts receivable?
The effective interest cost for first year : The effective interest cost for the first year is %.
What is the required return on franc flows : Convert the projected franc flows into dollar flows and calculate the NPV. What is the required return on franc flows?
What is value of a share of stock : If the P/E ratio is 15.7, what is the value of a share of stock?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the company wacc

Filer Manufacturing has 5 million shares of common stock outstanding. The current share price is $84, and the book value per share is $7. Filer Manufacturing also has two bond issues outstanding.

  The bondholder holds the bond until maturity

An investor buys a $1,000, 20 year 7 percent (interest paid semi annually) bond at par. After five years have passed, interest rates are 10 percent. The bondholder holds the bond until maturity how much did the investor lose on the purchase of the bo..

  Expected to generate fixed annual cash flows

What is the value of a building that is expected to generate fixed annual cash flows of 101,750 dollars every year

  Clearly outline the alternative ways to finance corporation

Clearly outline the alternative ways to finance a corporation. What is the salvage value of a project? how to calculate a project’s after-tax salvage?

  Benchmark price–sales ratio for the company

TwitterMe, Inc., is a new company and currently has negative earnings. The company’s sales are $1,300,000 and there are 135,000 shares outstanding. If the benchmark price–sales ratio for the company is 5.3, how much will you pay for the stock? If the..

  Credibility risk premium to the required return

“credibility” risk premium to the required return as part of her valuation analysis.

  What is the current equivalent lump sum of your settlement

After an injury, you win a lawsuit judgment of $3160 per month starting next month for a total of 47 months. If the interest rate is 2.5% APR compounded monthly, what is the current equivalent lump sum of your settlement?

  If the dollar-weighted and time-weighted yield rates

If the dollar-weighted and time-weighted yield rates were the same, what is the rate of return?

  What is his after tax lease payment

He rents the trucks on an asneeded basis about twice per week. If his tax rate is 8%, then what is his after tax lease payment?

  Beta and required rate of return

A stock has a required return of 11%; the risk-free rate is 2.5%; and the market risk premium is 6%. What is the stock's beta? If the market risk premium increased to 10%, what would happen to the stock's required rate of return? Assume the risk-free..

  When you retire you will initially require an annual income

When you retire you will initially require an annual income of 125,000 per year. You anticipate living for 25 years during retirement with an 8% investment return. How much do you need in your pension plans to cover this need? How much will you have ..

  Project has an initial cost

A project has an initial cost of $37,750, expected net cash inflows of $11,000 per year for 8 years, and a cost of capital of 10%. What is the project's PI?

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