User Account

All Pages

What will abc dividend payout be

Assignment Help Finance Basics
Reference no: EM133061087

ABC Corp. has a target debt-to-equity structure of 25/75. Management has decided on a capital budget of $1.4 million for next year. Sales are forecasted at $18 million, with a net margin of 8.8%. Management strictly follows a residual distribution model and pays all distributions as dividends.

Show all work.

-What will ABC's dividend payout be?

-Discuss the primary disadvantage of residual distribution models.

-What advice would you give to management on how to determine the optimal dividend policy?

Reference no: EM133061087

Questions Cloud

What are the current earnings per share : Crestwood Ltd., a computer hardware company with sales of $28 million and a net profit margin of 6.5% is considering an expansion. Management estimates the expa
What is balance for fixed assets on Olivia balance sheet : You have the following information on Olivia's Bridle Shop: total liabilities and equity = $65 million, What is balance for fixed assets on Olivia balance sheet
What are the consolidated sales and cost of goods sold : ABC had established the transfer price based on its normal gross profit rate. What are the consolidated sales and cost of goods sold
What is the contribution margin from this special offer : The Bikers' Club would reserve 140 suites for one night if the hotel accepts a price of $118 per night. What is the contribution margin from this special offer
What will abc dividend payout be : ABC Corp. has a target debt-to-equity structure of 25/75. Management has decided on a capital budget of $1.4 million for next year. Sales are forecasted at $18
Determine the project net present value : IFNA Ltd. is a pulp and paper company located in northern Ontario. IFNA Ltd. has an opportunity to undertake a project, which will increase its output in the pu
What is the swap fixed rate : You enter a 2-year pay-fixed receive-floating interest rate swap with semi-annual payments on a notional principal of $20 million and the current term structure
How much should be allocated to the retail division : The following information for 2016 is available: Actual R&D costs total 730,000. How much should be allocated to the retail division
What is balance at the end of six months : You have a balance of $4,000 on your 2% per month credit card, if you pay $50 at the end of each month, what is your balance at the end of six months?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd