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If the firm follows the residual dividend policy

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If the firm follows the residual dividend policy . Brooks Corp.’s projected capital budget is $2,000,000, its target capital structure is 60% debt and 40% equity, and its forecasted net income is $600,000. If the company follows a residual dividend policy, what total dividends, if any, will it pay out? a. $240,000 b. $228,000 c. $216,600 d. $205,770 e. $0 . D. Paul Inc. forecasts a capital budget of $725,000. The CFO wants to maintain a target capital structure of 45% debt and 55% equity, and it also wants to pay dividends of $500,000. If the company follows the residual dividend policy, how much income must it earn, and what will its dividend payout ratio be? Net Income Payout a. $898,750 55.63% b. $943,688 58.41% c. $990,872 61.34% d. $1,040,415 64.40% e. $1,092,436 67.62% . Banerjee Inc. wants to maintain a target capital structure with 30% debt and 70% equity. Its forecasted net income is $550,000, and its board of directors has decreed that no new stock can be issued during the coming year. If the firm follows the residual dividend policy, what is the maximum capital budget that is consistent with maintaining the target capital structure? a. $673,652 b. $709,107 c. $746,429 d. $785,714 e. $825,000 . Dentaltech Inc. projects the following data for the coming year. If the firm follows the residual dividend policy and also maintains its target capital structure, what will its payout ratio be? EBIT $2,000,000 Capital budget $850,000 Interest rate 10% % Debt 40% Debt outstanding $5,000,000 % Equity 60% Shares outstanding $5,000,000 Tax rate 40% a. 37.2% b. 39.1% c. 41.2% d. 43.3% e. 45.5% . Mortal Inc. expects to have a capital budget of $500,000 next year. The company wants to maintain a target capital structure with 30% debt and 70% equity, and its forecasted net income is $400,000. If the company follows the residual dividend policy, how much in dividends, if any, will it pay? a. $42,869 b. $45,125 c. $47,500 d. $50,000 e. $52,500 Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help

If the firm follows the residual dividend policy

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