Reference no: EM131188174
As a financial manager for WillPower, Inc, you have the following information:
a) The company follows a residual dividend policy;
b) The total capital budget for next year is likely to be $5,000,000;
c) The forecasted level of earnings next year is $8,000,000;
d) The target or optimal capital structure is a debt ratio of 50%;
Please answer the following questions:
a. What will be the amount funded with equity for the project ? (Keep the answer to a whole number. Example of answer format: $1,000,000)
b. Compute the amount of the dividend . (Keep the answer to a whole number. Example of answer format: $1,000,000)
c. Compute the dividend pay-out ratio . (Keep the answer to two decimals. Example of the answer format: 55.55%)
|
How much should he pay taxes on his social security benefits
: John is receiving $1,000 each month from Social Security, and he works at a local store as a part-time worker to earn extra $1,000 each month. He has very small amounts (less than $1,000 a year) of interest and dividends income. He is a single filer...
|
|
Compute the price and volume variances for sales
: Compute the price and volume variances for sales, assuming that Big Al’s sold all pizzas produced for $137,565 (meat) and $9,051 (veggie). What might explain these variances? Compute the labor rate and efficiency variances, assuming that Big Al’s pai..
|
|
Depreciated using straight-line method to zero salvage value
: Cascade Water Company (CWC) currently has 30 000 shares of common stock outstanding, trading at a price of $42 per share. CWC also has 500 000 bonds outstanding that are currently trading at $923.38 per bond. CWC has no preferred stock outstanding an..
|
|
Explain how the stock market has performed in recent years
: Identify the different types of financial markets and financial institutions, and explain how these markets and institutions enhance capital allocation. Explain how the stock market operates, and list the distinctions between the different types of s..
|
|
What will be the amount funded with equity for the project
: As a financial manager for WillPower, Inc, you have the following information: What will be the amount funded with equity for the project ? Compute the amount of the dividend .
|
|
What is the cash flow at year one
: You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose machine. The machine's total price including installation and delivery is $70,000. What is the initial investment ? What is the Cash F..
|
|
Compute the dividend pay-out ratio
: As a financial manager for WillPower, Inc, you have the following information: What will be the amount funded with equity for the project ? Compute the amount of the dividend. Compute the dividend pay-out ratio .
|
|
Calculate operating cash flow for this new machine
: Mayheim Enterprises is purchasing a printing machine for $10,000. It has a five year life and straight-line depreciation. Revenues will be $3000 per year and expenses will be $1,000 per year excluding depreciation. The firm is in a 40% tax bracket. C..
|
|
Calculate the bid-ask percentage spread
: In a bank, there are two quotation on the exchange rate board for Japanese Yen. $0.0041 $0.0039 Which quotation is the bank’s bid rate? Calculate the bid-ask percentage spread.
|