Capital structure in balance

Assignment Help Accounting Basics

Reference no: EM13139606

Fauver Worldwide forecasts a capital budget of $650,000, and it wants to maintain a target capital structure of 40% debt and 60% equity. It also wants to pay a dividend of $225,000. If the company follows the residual dividend policy, how much net income must it earn to meet its capital requirements, pay the dividend, and keep the capital structure in balance?

1) $584,250

2) $615,000

3) $645,750

4) $678,038

5) $711,939

Reference no: EM13139606

Questions Cloud

What would happen to the phenotypic ratios of the progeny : How can you tell if an allele is lethal? If one of the parents has a lethal allele, would all the possible genotypes be present in the progeny? What would happen to the phenotypic ratios of the progeny?

Philosophical concepts in buddhism-zenism : Can a religion exist without a belief in the direct relevance of God or gods? If so, how would this kind of religion differ from one in which the deity is important?

What is the specific heat for the metal : It takes 54.0 J to raise the temperature of an 10.3g piece of unknown metal from 13.0C to 25.0 C. What is the specific heat for the metal?

What is a leaky recessive allele : What is a leaky recessive allele? What is the phenotype of a homozygote for a leaky recessive allele?

Capital structure in balance : If the company follows the residual dividend policy, how much net income must it earn to meet its capital requirements, pay the dividend, and keep the capital structure in balance?

Information on buddhism references : Please provide information and/or resources for the following background information on Buddhism.

In which year do ages show more dispersed distribution : Using Coefficient of Variation determine in which year do the ages show a more dispersed distribution? Show your complete work and support your answer.

What is a lethal allele : What is a lethal allele? Are lethal alleles usually dominant or recessive? Are there any exceptions?

Is there only one dominant allele for a gene : How many possible alleles are there for any given gene? Is there only one recessive allele for a gene? Is there only one dominant allele for a gene? Is an allele always recessive or dominant with respect to other alleles of the gene?

User Account

All Pages