Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Middlesex Plastics Manufacturing had 2011 Net Income of $15.0 Million. Its 2012 Net Income is forecast to increase by 8%. The company's capital structure has been 35% Debt and 65% Equity since 2010, and the company plans to maintain this capital structure in 2012. The company paid $3.0 Million cash dividends in 2011. The company is planning to invest in a major capital project in 2012. The capital budget for this project is $12.0 Million in 2012.
1. If Middlesex increases its cash dividends in 2012 at the same rate of growth as its Net Income rate, what will be the total 2012 dividend payout in Dollars?
2. What is the 2012 dividend payout ratio if the company increases its dividends at 8%?
3. If the company follows a residual dividend policy, and maintains its 35% Debt level in its capital structure, and invests in the $12.0 Million capital budget in 2012, what would be the Residual Dividend level (in Dollars) in 2012? What would be this Residual Dividends payout ratio?
4. How much additional capital (Debt and/or Equity) will the company have to raise from outside sources in 2012 if it invests in this capital project, and follows a residual dividend policy?5. What would be the prudent dividend policy for 2012? Pay dividends at the current dividend growth rate of 8%, or pay the residual dividend amount.
What is the expected rate of return on Botolph's equity, after they have issued the new debt? (Hint: Do not make any assumptions about the market risk premium. Do not try to use the CAPM. Use your answer in part C)
Draw a time line of the cash flows. For this section of the project, students should follow and use the Cash Flow Estimation Excel Template File provided under the "Example Files for Term Project" folder.
Maynard Steel plans to pay a dividend of $3 this year. The company has an expected earnings growth rate of 4%, calculate the rate of Maynard's dividends.
The market and Stock J have the following probability distributions: a. Calculate the expected rates of return for the market and Stock J. b. Calculate the standard deviations for the market and Stock J. c. Calculate the coefficients of variation for..
The Harsanyi Corp. is considering four investments. Which provides the highest after-tax return for Harsanyi Corp. if it is in the 34% tax bracket?
Explain how Stephanie should convince her mother that it is inappropriate to call the bank manager and his wife for assistance in getting the loan approval?
Determine which of the following motivates corporations to enter into stock repurchase programs?
What is the DuPont formula? What does an increase in the number of days' sales in receivables ordinarily indicate about the credit and collection policy of the firm?
The Role of Financial Management in a Firm. Summarize the role of management as it relates to finance in a corporation. In your post, address the following:
hernandez corp. uses two variable inputs x and y to produce its final product canoes. its engineering department has
a cd bank trader is currently quoting a small figure bid-ask of 35-40 when the rest of the market is trading at
Using a week (7 days) as a base period, round the orders to nearest power of 2. If you charge the fixed trucking fee only once for deliveries that coincide what is the annual cost now?
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd