MJI Shippers has a current and target capital structure of 35 percent debt and 65 percent equity. This past year MJI, which uses the residual distribution model and makes all distributions in the form of dividends, had a dividend payout ratio of 45 percent and net income of $850,000. What was MJI’s capital budget?
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MJI Shippers has a current and target capital structure of 35 percent debt and 65 percent equity. This past year MJI, which uses the residual distribution model and makes all distributions in the form of dividends, had a dividend payout ratio of 45 percent and net income of $850,000. What was MJI’s capital budget?
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- Steph & Sons has a capital structure that consists of 20 percent equity and 80 percent debt. The company expects to report $3 million in net income this year, and 60 percent of the net income will be paid out as dividends. What is the debt structure of the capital budget?Company JA Prestwood had a net income of $1,000,000 this year. Next year's total capital budget is $2,600,000. If the target capital structure is 47% debt and the rest equity, what will be this year's dividend payout ratio?A COMPANY WILL BE FINANCING ITS OPERATIONS WITH AND A CAPITAL BUDGET IS 40,000,000 AND DEBT-TO-EQUITY RATIO OF 1. THE INTEREST RATE ON COMPANY'S DEBT IS 10%. THE EXPECTED RETURN ON EQUITY BY THE SHAREHOLDERS IS 16.66% WHILE THE BUDGETED NET INCOME BY MANAGEMENT IS 6,000,000. ASSUMING THAT THE COMPANY'S TAX RATE IS 40%, COMPUTE THE WEIGHTED AVERGE COST OF CAPITAL
- Petersen Co. has a capital budget of $ 910 . The company wants to maintain a target capital structure that is 65 percent debt and remaining percent is equity. The company forecasts that its net income this year will be $ 809 . If the company follows a residual distribution policy (with all distributions in the form of cash dividends), what will be its payout ratio? Enter your answer to the nearest .1%. Enter your answer as a whole number, thus 25.1% would be 25.1 not .251. Do not use % signs in your answer. Your Answer: AnswerStrategic Systems, Inc., expects net income of $800,000 for next year. Its target capital structure is 40 percent debt and 60 percent common equity. The Director of Capital Budgeting has determined that the optimal capital budget for next year is $1.2 million. If Strategic uses the residual dividend policy to determine next year’s dividend payout, what is the expected payout ratio? 0% 10% 67% 80% 90%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%
- 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.Strategic system Inc. expects to have net income of 800000 during the next year. Its target and current capital structure are 40 percent debt and 60 percent equity. The director of capital budgeting has determined that the optimal capital budget for next year is 1.2 million. If strategic uses residual dividend model to determine next year dividend payout. What is the expected payout ratio?XYZ Corp has a capital budget of $10M for next year. The company has a target capital structure of 65% Equity / 35% Debt. If net income next year is projected to be $9M and the company follows a residual distribution model and pays all distributions as dividends, what will be its 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?Strategic Systems Inc. expects to have net income of P800,000 during the next year. Its target, and current, capital structure is 40 percent debt and 60 percent common equity. The Director of Capital Budgeting has determined that the optimal capital budget for next year is P1.2 million. If Strategic uses the residual dividend model to determine next year's dividend payout, the expected dividend payout ratio would be %Brock Brothers wants to maintain its capital structure which is 30 percent debt and 70 percent equity. The company forecasts that its net income this year will be $1,000,000. The company follows a residual distribution policy and anticipates a dividend payout ratio of 40 percent. What is the size of the company’s capital budget? a) $600,000 b) $857,143 c) $1,000,000 d) $1,428,571 e) $2,000,000