How large should weis dividend payout ratio be next year

Assignment Help Financial Management
Reference no: EM132055801

The Wei Corporation expects next year's net income to be $15 million. The firm's debt ratio is currently 40%. Wei has $12 million of profitable investment opportunities, and it wishes to maintain its existing debt ratio.

According to the residual distribution model (assuming all payments art in the form of dividends), how large should Wei's dividend payout ratio be next year?

Reference no: EM132055801

Questions Cloud

What is the value of this gift today at a discount rate : What is the value of this gift today at a discount rate of 5% compounded annually?
Obtaining the benefits of cheap energy : Is it fair for the industrialized nations to expect that all nations, including the less developed ones, restrict their use of fossil fuels
Exact formula of a chemical compound : If IR does not give you the exact formula of a chemical compound, what useful information does it provide?
Different liquids have increased surface tension like water : What if we could make different liquids have increased surface tension like water, or even decreased surface tension like gasoline?
How large should weis dividend payout ratio be next year : According to the residual distribution model (assuming all payments art in the form of dividends), how large should Wei's dividend payout ratio be next year?
Calculate the minimum mass of butane : Suppose 23.8 g of butane is mixed with 32. g of oxygen. Calculate the minimum mass of butane that could be left over by the chemical reaction.
Calculate the maximum mass of sodium chloride : Calculate the maximum mass of sodium chloride that could be produced by the chemical reaction. Be sure your answer has the correct number of significant digits.
What will be the yearly withdrawal for the son from trust : A wealthy parent is trying to fund a trust fund for his oldest son. The parent has set aside $437,200.00 today in an account that pays 6.00% annual interest.
What is temperature in fahrenheit : What is the final temperature, in Celsius, inside the combustion chamber? What is this temperature in Fahrenheit?

Reviews

Write a Review

Financial Management Questions & Answers

  What is relationship and how does inflation affect libor

How is inflation related to Libor rates? What is the relationship and how does inflation affect LIBOR?

  How much must you invest in stock c

You want to create a portfolio equally as risky as the market, and you have $500,000 to invest.

  Company could do to increase your cash conversion cycle

Explain the cash conversion cycle (CCC). What are some specific things that your company could do to increase your cash conversion cycle?

  What is the IRR for each of these projects

What is the IRR for each of these projects? At what discount rate would the company be indifferent between these two projects?

  Deposit in the savings account

How much does your friend have to deposit in the savings account today?

  Suppose that you are currently financially unhealthy

Suppose that you are currently financially “unhealthy.” How would you know when you become financially healthy again?

  Should the same cap rate be used for the forecast period

Typically, cash flows are forecast over a 5-10 year period and a present value is determined picking the appropriate capitalization rate.

  What is the standard deviation of the stock returns

What was the stock’s return for the missing year? What is the standard deviation of the stock’s returns?

  How much interest will you owe at the end of the first year

How much interest will you owe at the end of the first year?

  What is present value of this stream of cash flows

Wally, president of Wally's Burgers, is considering franchising. What is the present value of this stream of cash flows?

  Sustainable growth rate assuming ending equity is relevant

Scooze Inc. projects a rate of return of equity of 20%. Management plans to pay 70% of earnings as dividends. Earnings this year will be $3.00 per share, and investors expect a 12% rate of return on the stock. Calculate the sustainable growth rate as..

  What is the net present value of this investment

You are making a $63,500 investment and feel that a 10% rate of return is reasonable given the nature of the risks involved. You feel you will receive $19,500 in the first year, $24,700 in the second year and $43,200 in the third year. What is the ne..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd