What are projected dividends for the company

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1. Sandpiper Inc. is estimating its weighted average cost of capital (WACC). Sandpiper’s capital structure weights on debt, preferred stock, and equity are 40%, 0%, and 60%, respectively. Its corporate tax rate is 30%. The expected returns required by holders of debt and equity are 6.00% and 10.50%, respectively. Compute Sandpiper’s WACC.

6.55%

7.98%

8.11%

8.25%

9.75%

10.00%

2. In its 2016 annual report, Lockheed Martin reported net earnings of $5,302 million and dividends paid of $2,048 million. Your forecast of net income for Lockheed Martin for 2017 is $5,504 million. What are projected dividends for the company for 2017?

A) $2,126 million

B) $2,048 million

C) $2,307 million

D) $2,069 million

Reference no: EM132028546

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