What is forecasted dividend payout ratio

Assignment Help Financial Management

Reference no: EM132021617

1. Trenton, Inc. has a capital budget of $1,500,000. It wants to maintain a target capital structure of 40% debt and 60% equity. The company forecasts a net income of $1,200,000. If it follows a residual dividend policy, what is its forecasted dividend payout ratio?

2. A recent offering of Talmot Corporation stock was underwritten by Advantage Securities. The terms were: Price to public $10 per share and 10 million shares. Proceeds to the company depend on the price per share and how many shares are sold. The investment banker incurred expenses of $1.5 million and the company incurred expenses of $1 million. This is an example of a

a. Best efforts deal

b. Hybrid deal

c. Negotiated deal

d. Not enough information to determine

e. None of the above

Reference no: EM132021617

Questions Cloud

Income effect the price specie flow mechanism : Could you please explain for me what is the price specie flow mechanism and also I don't understand how the income effect the price specie flow mechanism?

Should it purchase the loan if its duration is six years : OD Financial institution is considering buying a $4 million commercial loan to raise the existing average duration of its assets from four years to three years.

Employment insurance alleviates poverty and redistributes : The extent to which Employment Insurance alleviates poverty and redistributes incomes depends on how the benefits are distributed and how the program is finance

What will the price be for the insured and uninsured : If 50 units of medical services are used, what will the price be for the insured and uninsured?

What is forecasted dividend payout ratio : The company forecasts a net income of $1,200,000. If it follows a residual dividend policy, what is its forecasted dividend payout ratio?

What is the firm degree of operating leverage : What is the firm's degree of operating leverage (defined as the ratio of the percent change in EBIT to the percent change in sales) in going from a recession.

Do you believe the market power of automobile companies : (a) Do you believe the market power of automobile companies will increase or decrease with autonomous cars and why?

Keep the capital structure in balance : how much net income must it earn to meet its capital requirements, pay the dividend, and keep the capital structure in balance?

Compute expected return given these three economic states : Compute the expected return given these three economic states, their likelihoods, and the potential returns:

User Account

All Pages