What will be its dividend payout ratio

Reference no: EM13273791

Perkin's Corporation is planning for $4.9 million in capital expenditures next year. Perkin's target capital structure consists of 65% debt and 35% equity. If net income next year is $1.8 million and Perkin 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: EM13273791

Questions Cloud

Explain one of the first steps in the enrichment of uranium : One of the first steps in the enrichment of uranium for use in nuclear power plants involves a displacement reaction between and aqueous HF.

Determine the value of xl in a parallel resonant circuit : how do you determine the value of Xl in a parallel resonant circuit, when all youre given is Xc, Rcoil, and the parallel resistance

Define hydrocarbon mixtures are used as fuels : Hydrocarbon mixtures are used as fuels. What mass of CO2 gas is produced by the combustion of 189.2 g of a mixture that is 57.6 % CH4 and 42.4% C3H8 by mass

Design a circuit that uses one or more op-amps : A voltage divider provides a voltage of 1 Volts. Design a circuit that uses one or more op-amps so that the 1 volt is amplified by 7.

What will be its dividend payout ratio : If net income next year is $1.8 million and Perkin follows a residual distribution policy with all distributions as dividends, what will be its dividend payout ratio? Round your answer to two decimal places.

Explain feature of atomic emission spectra is incorporated : What feature of atomic emission spectra is incorporated in the schrodinger model of the hydrogen atom

Compute the weighted average cost of capital of the firm : The cost of equity capital is 12% and the pretax cost of debt is 7%. If the marginal tax rate of the firm is 40%,compute the weighted average cost of capital of the firm. Choose the answer that is closest.

Use an appropriate graph to compare the distribution : Use an appropriate graph to compare the distribution of systolic BP for 50-54 year olds with that for 60-64 year olds. Label the axes correctly, include unit of measure and provide an appropriate title. Include your name in the title of your graph. B..

What is the cost of preferred equity : Preferred stock of Future Motors pays a dividend of $4 each year and trades at a price of $25. What is the cost of preferred equity (preferred stock capital) for Future Motors?

User Account

All Pages