What is the maximum dividend per share could pay

Assignment Help Financial Accounting
Reference no: EM132958867

Your firm has net income of $12.0 million and an existing debt/equity ratio of 60:40. Going forward its debt to equity ratio will be 70:30.

Problem a) Using the residual method, what is the maximum dividend per share you could pay if you have a capital expenditure project of $6.5 million and 1.2 million shares outstanding?

Problem b) If you pay no dividend at all, what is the maximum capital expenditure program you can sustain?

Problem c) what is the max capex you can do if you pay a $3.30 dividend per share. Show all your work

Reference no: EM132958867

Questions Cloud

What total amount should be included as related party : What total amount should be included as related party disclosures in Jane Company's 2014 consolidated financial statements
Calculate the profit or loss made during covid period : Calculate the profit or loss you made during this Covid period? During Covid, you decide to enter the world of foreign exchange trading.
Create two load-based newton-raphson routines : Pushdown analysis of an Reinforced Concrete column - Create two load-based Newton-Raphson routines, regular and modified, which will for increasing load steps
How much were the losses or gains : Who made a profit/loss? and how much were the losses/gains. They each transact 650,000 pounds of pork bellies and one contract represents ties is 40,000 pounds.
What is the maximum dividend per share could pay : What is the maximum dividend per share you could pay if you have a capital expenditure project of $6.5 million and 1.2 million shares outstanding?
How much should he contribute today : How much should he contribute today if investment managers Dogwood Associates expect to earn returns averaging 4.3% per year on the charity's foundation account
What is the total profit or loss on the futures contracts : If interest rates change as expected and Futures contracts are used to hedge the expected move in interest rates - what is the total profit or loss
UBGMUA-15-M Nonlinear Structural Analysis Assignment : UBGMUA-15-M Nonlinear Structural Analysis Assignment Help and Solution, University of the West of England - Assessment Writing Service
What is the intrinsic value of the call option : What is the Intrinsic value of the call option? A company's call option is trading in the market at $1.50 and its stock price is $12.00 and the speculative

Reviews

Write a Review

Financial Accounting Questions & Answers

  What is the par value of the companys common stock

What is the par value of the company's common stock? Did the company issue any new shares during the fiscal year ended December 31, 2006?

  Which action of john marketing company is justified by

Which action of John Marketing Company is justified by? The John Marketing Company provides advertising services to an investment company in year A

  What is the payback period for each of the projects

If the two projects are independent and the company has unlimited fund, is it possible to choose the two projects? What is the payback period

  How many units should be produced in january of company

The company has a policy of having an inventory of units on hand. How many units should be produced in January, 2022 in order for the company to meet its goals?

  Amended and consequently created a past service cost

J.J. Heva Company is an American company that prepares its financial statements under US GAAP. In 2014, the company reported income of $5,000,000 wit stockholders’ equity of $40,000,000 on December 31, 2014. In anticipation of possible adoption of IF..

  Prepare the journal entries to record overhead incurred

Prepare the journal entries to record overhead incurred. The standard rate for applying overhead is $4.17 per unit, and 126,600 units were produced

  Promotional video to be shipped to its facility

Radius Line, Inc. has ordered 400 items of a promotional video to be shipped to its facility in Valdosta, Georgia, from the manufacturer's facility in Denver, Colorado. The invoice indicates that the goods are to be shipped F.O.B. (free on board) to ..

  What is the consolidated balance for the equipment account

What is the consolidated balance for the Equipment account as of December 31, 2017? Paar Corporation bought 100 percent of Kimmel, Inc

  Prepare trial balance and income statement

Enter the transactions in appropriate general ledger using T-accounts. Record depreciation using a 5-year life on the equipment, the straight-line method, and no salvage value. Do not use a drawing account. Prepare a trial balance. Prepare an income ..

  Question knox company starts operations january 1 because

question knox company starts operations january 1. because all work is done to customer specifications the company

  What are the total budgeted manufacturing cost for the month

If Marigold Manufacturing makes 19900 pairs of shoes this month, what are the total budgeted manufacturing cost for the month?

  Determine the net cash flows from operations forecasted

Determine the net cash flows from operations forecasted for each of the four months. Outlook generally collects 20% of its sales in cash

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