Maintains a debt-equity ratio

Assignment Help Financial Management

Reference no: EM13939816

Merlo, Inc. maintains a debt-equity ratio of 0.25 and follows a residual dividend policy. The company has after-tax earnings of $3,800 for the year and needs $3,200 for new investments. What is the total amount Merlo will pay out in dividends this year?

Reference no: EM13939816

Questions Cloud

Design and perform an experiment to test the hypothesis : Design and perform an experiment to test the hypothesis. Analyze the data and reach conclusions about your hypothesis. Share knowledge with the scientific community (your class).

What will price be immediately after next dividend payment : The C. Alice Stone Company's common stock has paid a $3 dividend for so long that investors are now convinced that stock will continue to pay that annual dividend forever. If the next dividend is due in one year and investors require 8% return on the..

Treasury inflation-indexed bond at par value : Your purchase a U.S. Treasury inflation-indexed bond at par value of $1,000. The bond offers a coupon rate of 6% paid semi annually. During the first six months that you hold the bond, prices in the United Stees rise by 2%. What is the new par value ..

Products corporation makes two products : Determine the unit cost of each product according to the ABC system. (Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the "tiny_mce_markerquot; sign in your response.)

Maintains a debt-equity ratio : Merlo, Inc. maintains a debt-equity ratio of 0.25 and follows a residual dividend policy. The company has after-tax earnings of $3,800 for the year and needs $3,200 for new investments. What is the total amount Merlo will pay out in dividends this ye..

Define a class named payment that contains a member variable : Finally, redefine the paymentDetails method to include all credit card information in the printout. Create a main method that creates at least two CashPayment and two CreditCardPayment objects with different values and calls paymentDetails for eac..

Fill in following data tables to help generate hypothesis : A hypothesis is an educated guess. Based on what you have learned and written about in the Introduction, state what you expect to be the results of the lab procedures.

Was the british pound selling at a discount or premium : What was the 90-day forward premium (or discount)? Was the British pound selling at a discount or premium in the forward market?

Calculate a firms cost of equity : Consider one of the two equations that can be used to calculate a firm's cost of equity: rE=Div1/P0+g. If the expected growth rate of American Airlines common stock dividends increases and if the price of AAL's stock also increases, what happens to A..

User Account

All Pages