Why do firms borrow short-term as well as long-term capital

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Reference no: EM131943118

1. Why do firms borrow short-term as well as long-term capital. What are the sources of these funds

2. Calculate the Dividend Yield, if the compnay's retention ratio is 70% and its current year profit was $420,000. The company's stock price is currently trading at $10 and its outstnading shares is 200,000.

3. Calculate the payback period

Yr 0 = -6500

Yr 1 = 1800

Yr 2 = 2700

Yr 3 = 1600

Yr 4 = 1900

Reference no: EM131943118

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