What will be its dividend payout ratio

Assignment Help Finance Basics
Reference no: EM13265139

Puckett Products is planning for $2.6 million in capital expenditures next year. Puckett's target capital structure consists of 55% debt and 45% equity. If net income next year is $1.5 million and Puckett follows a residual distribution policy with all distributions as dividends, what will be its dividend payout ratio? Round your answer to two decimal places.

Reference no: EM13265139

Questions Cloud

How many shares will remain after the repurchase : How many shares will remain after the repurchase? Round your answer to the nearest whole number.
Why type of electric motor is more popular than dc motor : Stepper motors are often used in low-power servomechanisms such as those found in small robots, computer printers, and other precision electro-mechanical machines. Explain why this type of electric motor is more popular than permanent-magnet DC mo..
How much work did the student do on the textbook : A 5.0 kg textbook is raised a distance of 30 cm as a student prepares to leave for school. How much work did the student do on the textbook
What frequency does the bat hear in the reflected wave : As a bat flies toward a wall at a speed of5.70m/s , What frequency does the bat hear in the reflected wave
What will be its dividend payout ratio : If net income next year is $1.5 million and Puckett follows a residual distribution policy with all distributions as dividends, what will be its dividend payout ratio? Round your answer to two decimal places.
Describe sunlight to reach earth : If the sun is a distance of 1.5 x 10^8 km from earth, how many minutes does it take sunlight to reach earth if light travels at 186,000 miles each second
Determine the location of the final image : An object is placed 2.0 cm from a converging lens with focal length 1.5 cm. Determine the location of the final image
Calculate the impedance of inductor circuit in polar form : An inductor rated at 4 Henrys is subjected to a sinusoidal AC voltage of 24 volts RMS, at a frequency of 60 hertza) Write the formula for calculating inductive reactance (XL), and solve for current through the inductor.
What is meant by the term toehold : What is meant by the term toehold? How does the toehold help bidders in an Mergers & Acquistion situation?

Reviews

Write a Review

Finance Basics Questions & Answers

  Securitization and the role of financial intermediaries

Discuss the relationship between securitization and the role of financial intermediaries in the economy? What happens to financial intermediaries as securitization progresses?

  Vertical vs horizontal analysis

Should someone put more emphasize on one type over the other? These two methods are only two approaches in an entire arsenal of ways of analyzing a corporation.

  Calculating forward prices

A trader owns gold as part of a long-term investment portfolio. The trader can buy gold for $450 per ounce and sell it for $449 per ounce. The trader can borrow funds at 6% per year and invest funds at 5.5% each year.

  Computation of net income

Fred Gowen opened Gowen Retail Sales as a sole proprietorship and recorded the following transactions during his 1st month in business:

  Determine costs that change in direct proportion

A method of attributing expenses to products based on assigning costs of resources to activities and assigning costs of activities to products is known as Unit Based Costing.

  What is the project’s npv without the option to expand

The risk free rate is 5%.(a) What is the project’s NPV without the option to expand?(b) What is its ROA (real option analysis value) with the option to expand?

  Computing forward rate

Investing $1,000,000 for six months. Planning purchasing US T Bills at 1.810% six month rate, not yearly, matures in 26 weeks. Spot Exchange Rate is $1.00/Yen100,

  Consolidation criterion led

When is consolidation considered inappropriate even though the parent holds a majority of the voting common shares of another firm?

  Calculate break-even point in units

Rosario corporation, which is located in Buenos Aires, Argentina, and manufactures a component used in farm machinery. The company's fixed costs are 4,000,000 each year.

  Compare and contrast potential financial outcomes

Compare and contrast three potential financial outcomes for ExxonMobil's proposed initiative. Evaluate your findings to determine the most likely outcome.

  Explain comparison of audit in compliance

Explain Comparison of audit in compliance with latest professional guidance where EM applied alternative procedures to accounts when confirmations requested were not received

  Cross-border acquisition abandonment

Please critique this article by identifying methodology, gap and key findings. Cross-border acquisition abandonment and completion: The effect of institutional differences and organizational learning in the international business service industry

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