Which actions would reduce its need to issue new common

Assignment Help Financial Accounting
Reference no: EM132762445

Problem 1: Bankston Corporation forecasts that if all of its existing financial policies are followed, its proposed capital budget would be so large that it would have to issue new common stock. Since new stock has a higher cost than retained earnings, Bankston would like to avoid issuing new stock. Which of the following actions would REDUCE its need to issue new common stock?

Group of answer choices

Option 1: Increase the percentage of debt in the target capital structure.

Option 2: Reduce the percentage of debt in the target capital structure.

Option 3: Increase the dividend payout ratio for the upcoming year.

Option 4: Increase the proposed capital budget.

Reference no: EM132762445

Questions Cloud

What would be your response to shareholders and customers : After watching the required video "Profit's not always the point" by Harish Manwani and reading the article "Samsung delays launch of Galaxy Fold After Screen.
Repeat assuming 90 percent efficiency : Assume 100 percent efficiency and assume that 1m^3 of water =1t=1000kg. Repeat assuming 90 percent efficiency.
Identify the disadvantages of self-insurance : Established in 1850, Identify the advantages and disadvantages of self-insurance and write brief descriptions how each applies to Taunton College.
Describe the energy transfers taking place : Use diagrams and describe the energy present at each of the the three extreme points (i.e. minimum, equilibrium, and maximum)
Which actions would reduce its need to issue new common : Bankston would like to avoid issuing new stock. Which of the following actions would REDUCE its need to issue new common stock?
Compute variable predetermined manufacturing overhead : Variable manufacturing overhead costs $54,000. Compute the total, fixed, and variable predetermined manufacturing overhead rates.
How does leadership influence ethical behavior of work group : How does leadership influence the ethical behavior of a work group, organization, or society? Cite personal or historical examples.
Determine the amount of dividends declared and paid : Assume the average market price of the common shares to be $15 per share. Determine the amount of dividends declared and paid to the preferred shareholders
Instructions for supply chain innovations by wal-mart : Wal-Mart is well know to be a leader in Supply Chain Management. This week's writing assignment is related to Wal-Mart.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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