Shares and segura corporation maintains a debt-equity ratio

Assignment Help Finance Basics
Reference no: EM131428897

Segura Corporation predicts that earnings in the coming year will be $45,000,000. There are 24,000,000 shares and Segura Corporation maintains a debt-equity ratio of 3.

a) Calculate the maximum investment funds available without issuing new equity.Maximum investment funds = $?

b) What will be the increase in borrowing to have the above investment funds?   New borrowing = $?

c) Suppose the firm uses residual policy. Planned capital expenditures total $72,000,000. Based on this information, what will the dividend per share be?

Dividend per share = $?       per share

d) In part (c), how much borrowing will take place?New borrowing = $?

e) In part (c), What is the addition to retained earnings?Addition to retained earnings = $?

f) Suppose Segura Corporation plans no capital outlays for the coming year. What will the dividend per share be under a residual policy?Dividend per share = $?

g) In part (f), what will new borrowing be? New borrowing = $?

Reference no: EM131428897

Questions Cloud

Violate basic principle of stock valuation : Moonnalso noticed that Googlepays no dividends yet investors are willing to buy shares in this firm. How is this possible? Does this violate basic principle of stock valuation? Do you supportMoonn'sconcerns? Briefly justify.
Find retrospective control limits for the values : Give an estimate of the process short-term standard deviation derived from the ranges (use all 25 subgroups and the assumption that σ is constant over the study period).
How is it different from group work : The idea of teamwork continues to be popular, some may say, a necessity in today’s competitive environment. Successful companies such as Apple, Inc., WalMart, Target, to name a few, pride themselves on success through teamwork. But, teamwork does not..
Evaluate risk management techniques from experts in field : In this assignment, you will compare and evaluate risk management techniques from experts in the field. Go to the Ashford University Library and find one article by Dr. James Kallman.
Shares and segura corporation maintains a debt-equity ratio : Segura Corporation predicts that earnings in the coming year will be $45,000,000. There are 24,000,000 shares and Segura Corporation maintains a debt-equity ratio of 3.
What constitutes a subgroup in the context of this problem : Assuming the sorting process is stable, estimate the average number of packages routed to the "no chute open" bin during a particular shift. Estimate the standard deviation of the number of packages routed to the "no chute open" bin. These estimat..
Personal or professional decision-making : If you take on a large risk, are you guaranteed a large return? Why or why not? What other factors play into risks that are not covered in the video? When have you had to consider risk and return in personal or professional decision-making?
Describe the leaders organization or group : Conduct research on a global leader (U.S. or another country), living or dead, who is (was) viewed as a positive leader in the court of public opinion. Describe the leader’s organization or group. Describe the source(s) of power you believe this user..
Identify the challenges that overlapping of jurisdictions : Explain, in detail, what you believe to be the greatest challenge facing law enforcement agencies investigating exploitation, cyber stalking, and obscenity. Provide a rationale for your response.Identify the specific challenges that overlapping o..

Reviews

Write a Review

Finance Basics Questions & Answers

  Explain venture capital calculations

Explain Venture capital calculations and you consider opening a business that allows them to let off steam and get rid of their aggression

  Calculation of eps and retained earnings everdeen mining

Calculation of EPS and retained earnings Everdeen Mining, Inc., ended 2015 with a net profit before taxes of $436,000. The company is subject to a 40% tax rate andmust pay $64,000 in preferred stock dividends before distributing any earnings on th..

  Differences in contractual provisions

All bonds have some common characteristics, but they do not always have the same contractual features. Differences in contractual provisions, and in the underlying strength of the companies backing the bonds, lead to major differences in bonds ris..

  How might prototyping be used as part of the system

How might prototyping be used as part of the System Development life cycle (SDLC)? Use your own words. A 100 MIN no less.

  Calculate the firms levels of earnings per share

Winners Corporation, a home appliances manufacturer, expects sales of 20,000 units at $5 each unit in the coming year and must meet the following obligations;

  Calculate firm ratio long-term debt to long-term debt plus

A firm has $100 million in current liabilities, $200 million in total long-term liabilities, $300 million in stockholders' equity, and total assets of $600 million. Calculate the firm's ratio of long-term debt to long-term debt plus equity.

  Evaluating an experimental oncology treatment

Hell's Pass Hospital is evaluating an experimental oncology treatment. The treatment is currently under review for Medicare reimbursement and legislative experts believe the treatment has a 70% chance of receiving approval for

  Prepaid insurance pound3600 cash pound15400 supplies

the statement of financial position for diaz company includes the following accounts accounts receivable pound12500

  Foundations of financial management

Mr. Frost controls proxies for 32,000 of the 60,000 outstanding shares of Express Frozen Foods, Corporation Mr. Cooke heads a dissident group that controls the remaining 28,000 shares.

  If the same market basket cost 1000 in year 2 what is the

suppose in the base year a typical market basket purchased by an urban family cost 250. in year 1 the same market

  Comment on the liquidity of the two companies

Suppose you are comparing two companies that are in the same line of business.- Comment on the liquidity of the two companies. Which company has more risk of not satisfying its near-term obligations? Why?

  Relationship between the inflation rates

What responsibilities did that impose on the US? What were the risks to other nations? Explain the relationship between the inflation rates in two countries and their exchange rates.

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