What were total capital outlays

Assignment Help Financial Management
Reference no: EM131620295

Crawford Inc, a litter recycling company, uses a residual dividend policy. A debt/equity ratio of 1.0 is considered optimal. Earnings for the period just ended were 1400, and a dividend of 420 was declared. How much in new debt was borrowed? What were total capital outlays?

Reference no: EM131620295

Questions Cloud

Considering investing in an opportunity : You are considering investing in an opportunity that will pay you $5000 3 years from now, and $8000 5 years from now.
Maximum investment funds available without issuing equity : Calculate the maximum investment funds available without issuing new equity and the increase in borrowing that goes along with it.
Management uses the payback period method : If management uses the payback period method with a cut off of 5.0 years,
What do you think the exdividend price will be : Suppose capital gains are not taxed, but dividends are taxed at 15 percent. What do you think the exdividend price will be?
What were total capital outlays : Crawford Inc, a litter recycling company, uses a residual dividend policy. What were total capital outlays?
How many new shares will be distributed : If Okanagan stock currently sells for 30 per share and a 10 percent stock dividend is declared, how many new shares will be distributed?
Which essential of the marketing communications : Which essential of the marketing communications mix includes an assortment of programs directed internally to employees of the corporation
What is the present value of all future cash flows : What is the present value of all future cash flows?
Should company replace old machine now or at end of years : Should the company replace the old machine now or at the end of five years?

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the specific cost of each source of financing

Calculate the specific cost of each source of financing Assume that the required return of retained earnings is equal to that on common stock. If earning is available to common shareholders are expected to be $7 million what is the break point associ..

  Considering financing project with equity and debt

Zipp Corp. is considering a project that will require $700,000 in assets. The project will be finances with 100%. The company faces a tax rate of 40%. Ziff Corp. is also considering financing the project with 50% equity and 50% debt. The interest rat..

  How many years do you want to save before retiring

You are still in school and would like to visualize how you will save for your retirement. You can invest in stock funds which are expected to return 8.5% per year in nominal terms and bond funds which return 3.5% per year in nominal terms. how many ..

  What happens to the firms earnings per share

The firm is considering selling bonds and simultaneously repurchasing some of its stock. If it moves to a capital structure with 40% debt based on market values, its cost of equity, rs, will increase to 11% to reflect the increased risk. What would b..

  Higher offers raise costs

Higher offers raise costs: Opposing view While the deplorable incident on United didn’t involve an airline selling more seats than were available on the plane.

  Bonds currently sell-yield to maturity

Crossfade Co. issued 16-year bonds two years ago at a coupon rate of 8.5 percent. The bonds make semiannual payments.

  What is the firms cost of common equity

Martin Industries just paid an annual dividend of $1.90 a share. The market price of the stock is $50.90 and the growth rate is 7.2 percent. What is the firm's cost of common equity (retained earnings)?

  Show the firms net profit for the past year

Using accrual accounting and the preceding values, show the firm’s net profit for the past year.

  Disadvantages of the payback period decision rule

Which of the following are disadvantages of the payback period decision rule?

  Firm should pay to completely eliminate its float

What is the highest daily fee the firm should pay to completely eliminate its float?

  Provide an example of the time value of money concept

List and explain briefly the major forms of business organization. Explain in detail and provide an example of the time value of money concept.

  Current assets-liabilities result of investment decision

Financial managers often view the balances their companies have in Current Assets and Current Liabilities the result of an investment decision. Discuss why these balances can be viewed as “investment” decisions.

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