What is the expected dividend payout ratio

Assignment Help Finance Basics
Reference no: EM13275573

Victor Corporation has a capital budget of $5 million and wants to maintain a capital structure of 40% debt and 60% equity. The company expects net income of $4 million. What is the expected dividend payout ratio if the company follows a residual dividend policy? 1. 50% 2. 40% 3. 20% 4. 25% 5. none of the above

Reference no: EM13275573

Questions Cloud

What is the magnitude and direction of the current flowing : If 3x10^20 electrons go through the cross section in the z-direction in 4 seconds, and simultaneously, 1.5x10^20 protons go through the same cross section in the negative z-direction, what is the magnitude and direction of the current flowing thro..
Calculate the value of resco operations : Calculate the value of RESCO's operations if next year's free cash flow is expected to be $1 million, free cash flow is expected to grow at a constant rate of 3%, weighted average cost of capital is 9%.
What is the overall equation for the reaction : During the isomerization of trans-1,2-dibenzoylethylene C16H12O2 using 95% Ethanol C2H6O , and UV light irradiation. What is the overall equation for this reaction. What is the product
Calculate mass flow through the boundary layer at distance : Calculate the mass flow through the boundary layer at a distance of 5 cm from the leading edge of the plate. How much mass flows into the boundary layer in the region between 2.5 and 5 cm from the leading edge
What is the expected dividend payout ratio : What is the expected dividend payout ratio if the company follows a residual dividend policy? 1. 50% 2. 40% 3. 20% 4. 25% 5. none of the above
How do you explain gender differences in the crime rate : How do you explain gender differences in the crime rate? Doyou think males are more violent than women and explain why this is or is notthe case?
Find the initial and final kinetic energies for this system : A disk-shaped merry-go-round of radius 2.63 m and mass 155 kg rotates freely with an angular speed of 0.744 rev/s. find the initial and final kinetic energies for this system
Calculate horizon value at the end of year 5 : Calculate horizon value at the end of year 5 (round to the nearest dollar). 1. $91 2. $101 3. $95 4. $149 5. none of the above.
Calculate each company cash balance at the end of the year : Calculate each company's cash balance at the end of the year. b. Explain what might cause company C's net cash from financing activities to be negative.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the yield that trevor would earn by selling the bond

what is the yield that Trevor would earn by selling the bonds today? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25%.)

  Will the acquisition have on wilsons cost of equity capital

which will change the company's beta to 1.7. What effect, if any, will the acquisition have on Wilson's cost of equity capital?

  Estimate the company current stock price

BC Enterprises is expected to pay a dividend of $5 per share at the end of the year and that dividend is expected to grow at a constant rate of 5 percent each year in the future.

  What is the implied value of each warrant

Upstate Water Company just sold a bond with 80 warrants attached. The bonds have a 20-year maturity and an annual coupon of 12%, and they were issued at their $1,000 par value. Currently, the yield on similar straight bonds is 15%. What is the imp..

  Discuss the advantages and disadvantages of models

Discuss the advantages and disadvantages of models used to assess risk exposure. Which of the disadvantages might be the most problematic?

  Calculation of project ocf

Calculation of Project OCF and Project NPV and Project Cash Flow from Assets and Modified ACRS. and What is the project's year 0 net cash flow

  Determine average cash balance

Throughout the course of the year, my various projects will require a total amount of cash of $4,000,000. The interest cost for this requirement is 9.75 percent

  Determine expected return

Suppose you have two hundred shares of Somner Resources preferred stock, which currently sells for $40 per share and pays annual dividends of $3.40 each share.

  Is it efficient for financial managers to adjust business

Is it efficient for financial managers to adjust their business practices to important changes in market conditions? Explain.

  Discuss the two material variances that may occur

Discuss the two material variances that may occur, including how they are calculated and reasons for their occurrence.

  Translation of foreign currencies

Describe the policies used in reflecting in the financial statements the impact of changes in foreign exchange rates.

  Time value of money-future present value

For below time value of money problems, complete by using formulas in Excel on each separate tab. List any assumptions and support each decision made.

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