NEKO Inc. has forecasted that its net income will be P520,000. The company has an debt-to-equity ratio of 25%. The dividend policy of the firm follows the residual dividend model. NEKO Inc. has a project that needs funding amounting to P600,000. The number of issued and outstanding shares of NEKO Inc. is 5,000. How much of the project must be funded by equity?
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- Ogier Incorporated currently has $800 million in sales, which are projected to grow by 10% in Year 1 and by 5% in Year 2. Its operating profitability ratio (OP) is 10%, and its capital requirement ratio (CR) is 80%? What are the projected sales in Years 1 and 2? What are the projected amounts of net operating profit after taxes (NOPAT) for Years 1 and 2? What are the projected amounts of total net operating capital (OpCap) for Years 1 and 2? What is the projected FCF for Year 2?Bulldogs Inc. has forecasted that its net income will be P520,000. The company has an debt-to-equity ratio of 25%. The dividend policy of the firm follows the residual dividend model. Bulldogs Inc. has a project that needs funding amounting to P600,000. The number of issued and outstanding shares of Bulldogs Inc. is 5,000. How much of the project must be funded by equity? The carrying cost curve and ordering cost curve of Bulldogs Inc.’s inventory intersect at 3,500 units. What is the total annual cost of inventory given that the annual demand is 75,000 units and the carrying cost per unit per year is P12National Inc. has forecasted that its net income will be P520,000. The company has an debt-to-equity ratio of 25%. The dividend policy of the firm follows the residual dividend model. National Inc. has a project that needs funding amounting to P600,000. The number of issued and outstanding shares of National Inc. is 5,000. How much of the project must be funded by equity? a. P450,000 b. P480,000 c. P120,000 d. P150,000
- Bulldogs Inc. has forecasted that its net income will be P520,000. The company has an debt-to-equity ratio of 25%. The dividend policy of the firm follows the residual dividend model. Bulldogs Inc. has a project that needs funding amounting to P600,000. The number of issued and outstanding shares of Bulldogs Inc. is 5,000. How much of the project must be funded by equity?National Inc. has forecasted that its net income will be P520,000. The company has an debt-to-equity ratio of 25%. The dividend policy of the firm follows the residual dividend model. National Inc. has a project that needs funding amounting to P600,000. The number of issued and outstanding shares of National Inc. is 5,000. How much is the dividend per share?NEKO Inc. has forecasted that its net income will be P400,000. The company has debt ratio of 30%. The dividend policy of the firm follows the residual dividend model. NEKO Inc. has an investment project amounting to P500,000. The number of issued and outstanding shares is 4,000. What is the dividends per share of NEKO Inc.?
- A firm in the IT sector is considering how to set its dividend policy. It has a capital budget of €3,000. The company wants to maintain a target capital structure that is 15% debt and 85% equity. The company forecasts that its net income this year will be €3,500. If the company follows a residual dividend policy, what will be its total dividend payment and its payout ratio? Dividends = Net income – [(target equity ratio) *(total capital budget)].Bridgette Inc. has forecasted that its net income will be P400,000. The company has debt ratio of 30%. The dividend policy of the firm follows the residual dividend model. Bridgette Inc. has an investment project amounting to P500,000. The number of issued and outstanding shares is 4,000. 1. What is the dividends per share of Bridgette Inc.?Widgets Inc has an expected EBIT of $64,000 in perpetuity and a tax rate of 35 percent. The firm has$95,000 in outstanding debt at an interest rate of 8.5 percent, and its unlevered cost of capital is 15percent. What is the value of the firm according to M&M Proposition I with taxes? Should the companychange its debt–equity ratio if the goal is to maximize the value of the firm? Explain.
- The DEF Company is planning a $64 million expansion. The expansion is to be financed by selling $25.6 million in new debt and $38.4 million in new common stock. The before-tax required rate of return on debt is 0.086 and the required rate of return on equity is 0.125. If the company has a marginal tax rate of 0.26, what is the firm's cost of capital? Instruction: Type your answer as a decimal, and round to three decimal placesABC SAOG needs RO. 5 million for the installation of a new factory. The new factory expects to yield annual Earnings Before Interest and Tax (EBIT) of RO. 600,000. In choosing a financial plan, ABC SAOG has an objective of maximizing earnings per share (EPS). The company proposes to issue ordinary shares and raise the debt of RO. 500,000, RO. 1,500,000 or RO. 2,000,000. The current market price per share is RO. 350 and is expected to drop to RO. 150 if the funds are borrowed in excess of RO. 1,800,000. Funds can be borrowed at the following rates: Up to RO. 500,000 at 7% Over RO. 500,000 to RO. 2,000,000 at 9% Over RO. 2,000,000 at 14% Assuming a tax rate of 40%, advise the company.Dillon Labs has asked its financial manager to measure the cost of each specific type of capital as well as the weighted average cost of capital. The weighted average cost is to be measured by using the following weights: 30% long-term debt, 10% preferred stock, and 60% common stock equity (retained earnings, new common�� stock, or both). The firm's tax rate is 23%. Debt : The firm can sell for $1030 a 14-year, $1,000-par-value bond paying annual interest at a 8.00% coupon rate. A flotation cost of 2% of the par value is required. Preferred stock: 9.00% (annual dividend) preferred stock having a par value of $100 can be sold for $92.An additional fee of $2 per share must be paid to the underwriters. Common stock: The firm's common stock is currently selling for $90 per share. The stock has paid a dividend that has gradually increased for many years, rising from $2.00 ten years ago to the $3.26 dividend payment, D0, that the company just recently made.…