Supply target capital structure consists

Assignment Help Financial Management

Reference no: EM131959029

Harvey's Industrial Plumbing Supply's target capital structure consists of 40% debt and 60% equity. Its capital budget this year is forecast to be $650,000. It also wants to pay a dividend of $225,000. a.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? b. Is the residual approach to setting the dividend a good approach? Why or why not?

Reference no: EM131959029

Questions Cloud

Value of operations-value of equity and stock price : Calculate Reston's value of operations, value of equity and the stock price.

Select and circle the proper choice : In the following sentences, select and circle the proper choice, inside of each set o parentheses, so that the sentences will be accurate and logical:

Calculate your monthly payment using excel pmt function : Calculate your monthly payment using excel PMT function, then create an ammortization table for your loan showing the payoff of your loan over time.

Calculate the molar solubility of silver thiocyanate : Calculate the molar solubility of silver thiocyanate, AgSCN, in pure water and in water containing 0.010 M NaSCN. Solve problem without ignoring x.

Supply target capital structure consists : Harvey's Industrial Plumbing Supply's target capital structure consists of 40% debt and 60% equity.

Explain the possible consequences in crop yields : As global food demand rises, climate change is hitting our staple crops. Explain the possible consequences in crop yields and subsequent price changes.

Compensation models for traders play into rogue trading : How much do compensation models for traders play into Rogue Trading?

What is the white house conference on aging : What is the White House Conference on Aging , how often is it held , and how does it impact aging policy? We had the most recent WHCoA event last summer.

Calculate the standard cell potential for the reaction : Calculate the standard cell potential for the following reaction, and determine whether or not this reaction is spontaneous under standard conditions:

User Account

All Pages