What will be its dividend payout ratio-unlevered beta

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1. Global Inc. has a target capital structure that consists of 30% debt and 70% equity. The firm anticipates that its capital budget for the next year will be $1 million. If it reports net income of $900,000 and it follows a residual dividend policy, what will be its dividend payout ratio?

2. Troy Metro has $30 million in assets, which were financed with $18 million of debt and $12 million in equity. Troy’s levered beta is 1.2, and its tax rate is 40%. What is Troy’s unlevered beta?

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Reference no: EM13805999

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