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SMPH has a strict residual dividend policy and they projected that the net result of their operation this year is positive at P12,000,000. SMPH has a target capital budget of P10,000,000 and a funding structure of 30% debt and 70% equity. How much of the net income will be used to fund the equity portion of the capital budget? Assuming the company has 400,000 issued ordinary shares on which 50,000 is held as treasury shares, what will be the dividends per share?
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- Blue Co. already determined the additional financing needed that it plans to raise through issuance of shares amounting to P2,450,000. The profit of the firm is P1,800,000 and it has a policy of retaining two-third of its net income. How much is the projected capital budget of Blue Co.?SMPH has a strict residual dividend policy and they projected that the net result of their operation this year is positive at P12,000,000. SMPH has a target capital budget of P10,000,000 and a funding structure of 30% debt and 70% equity.How much of the net income will be used to fund the equity portion of the capital budget?SMPH has a strict residual dividend policy and they projected that the net result of their operation this year is positive at P12,000,000. SMPH has a target capital budget of P10,000,000 and a funding structure of 30% debt and 70% equity. Assuming the company has 400,000 issued ordinary shares on which 50,000 is held as treasury shares, what will be the dividends per share?
- Altamonte Telecommunications has a target capital structure that consists of 50% debt and 50% equity. The company anticipates that its capital budget for the upcoming year will be $1,000,000. If Altamonte reports net income of $2,700,000 and it follows a residual dividend payout policy, what will be its dividend payout ratio? Round your answer to two decimal places. %Plato, Inc., expects to have net income of $5,000,000 during the next year. Plato’s target capital structure is 35 percent debt and 65 percent equity. The company’s director of capital budgeting has determined that the optimal capital budget for the coming year is $6,000,000. If Plato follows a residual distribution policy (with all distributions in the form of dividends) to determine the coming year’s dividend, then what is Plato’s payout ratio? 38% 42% 58% 33% 22%altamonte telecommunications has a target capital structure that consist of 45% debt and 55% equity. the company anticipates that its capital budget for the upcoming year will be $1,000,000. if altamonte reports net income of $1,200,000 and it follows a residual dividend payout policy, what will be its dividend payout ratio?
- LoveDebt Ltd. has a target capital structure which consists of 60% of debt and 40% of equity. The company anticipates that its capital budget for the upcoming year will be $3,500,000. If LoveDebt Ltd. reports net income of $2,500,000 and it follows a residual dividend payout policy, what will be its dividend payout ratio?A firm expects to have net income of $5,000,000 during the next year. The company’s target capital structure is 60% debt and 40% equity. The company's director of capital budgeting has determined that the optimal capital budget for the coming year is $5,000,000. If MSL Tech follows a residual distribution policy (with all distributions in the form of dividends) to determine the coming year’s dividend, then what is the firm’s expected dividend payments? $2,000,000 $3,000,000 $5,000,000 $6,000,000 Using the data from Question 31, find the dividend payout ratio for the company. 20% 40% 60% 50%National Co.’ CFO has provided the following information:· The company’s capital budget is expected to be P5,000,000.· The company’s target capital structure is 75 percent debt and 25 percent equity.· The company’s net income is P4,600,000.If the company follows a residual dividend policy, what portion of its net income should it pay out as dividends this year? Format: 11.11%
- Altamonte Telecommunications has a target capital structure that consist of 70% debt and 30% equity. The company anticipates that its capital budget for the upcoming year will be $2,000,000. If Altamonte reports net income of $1,100,000 end it follows a residual, dividend, payout policy, what will be its dividend payout ratio? Round your answer to two decimal places.Express Industry’s expected net income for next year is $1.6 million. Its target, and current, capital structure is 30 percent debt and 70 percent common equity. The director of capital budgeting has determined that the optimal capital budget for next years is $2 million. Suppose Express uses the residual dividend policy to determine next year’s dividend. What is the expected dividend payout ratio? Can we use the residual dividend policy to set dividends on an annual basis? Explain why.Altamonte Telecommunications has a target capital structurethat consists of 45% debt and 55% equity. The company anticipates that its capital budgetfor the upcoming year will be $1,000,000. If Altamonte reports net income of $1,200,000and it follows a residual dividend payout policy, what will be its dividend payout ratio?