Hamilton Corporation has a target equity ratio of 65%, andits capital budget is $2 million. If Hamilton has net income of$1.6 million and follows a residual distribution model, how muchwill its distribution be? ($300,000)

Coldstream Corp. is comparing two different capital structures. Plan I would result in 10,000 shares of stock and $100,000 in debt. Plan II would result in 5,000 shares of stock and $200,000 in debt. The interest rate on the debt is 6 percent. a. Assuming that the corporate tax rate is 40 percent, compare both of these plans to an all-equity plan assuming that EBIT will be $60,000. The all-equity plan would result in 15,000 shares of stock outstanding. What is the EPS for each of these plans? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)     EPS Plan I $ Not attempted Plan II $ Not attempted All equity $ Not attempted    d-2 Assuming that the corporate tax rate is 40 percent, what are the break-even levels of EBIT for each plan as compared to that for an all-equity plan? (Do not round intermediate calculations.)      EBIT Plan I and all-equity $ Not attempted Plan II and all-equity $ Not attempted…

firm has a capital budget of $30 million, net income of $35 million, and a targetcapital structure of 45% debt and 55% equity. If the residual dividend policy is used,what is the firm’s dividend payout ratio?

The projected capital budget of Kandell Corporation is $575,000, its target capital structure is 60% debt and 40% equity, and its forecasted net income is $575,000. If the company follows a residual dividend policy, what total dividends, if any, will it pay out? Select the correct answer. a. $344,887 b. $345,000 c. $344,831 d. $344,944 e. $344,774

A firm has a profit margin of 15 percent on sales of $20,000,000. If the firm has debt of $7,500,000, total assets of $22,500,000, and an after-tax interest cost on total debt of 5 percent, what is the firm's ROA? Group of answer choices   8.4%   10.9%   12.0%   13.3%   15.1%

A company has a WACC of 10%. It can borrow at 4%. Assume that the company has a target capital structure of 60% equity, 40% debt. The corporate tax rate is 20%. Based on MM Theory with taxes, what is the cost of equity? What is the WACC?

Barton Industries expects that its target capital structure for raising funds in the future for its capital budget will consist of 40% debt, 5% preferred stock, and 55% common equity. Note that the firm's marginal tax rate is 25%. Assume that the firm's cost of debt, rd, is 10.4%, the firm's cost of preferred stock, rp, is 9.6% and the firm's cost of equity is 13.0% for old equity, rs, and 13.3% for new equity, re. What is the firm's weighted average cost of capital (WACC1) if it uses retained earnings as its source of common equity? Do not round intermediate calculations. Round your answer to two decimal places.

The following facts apply to your company:   Target capital structure:          50% debt , 50% equity             EBIT:                                      $200 million             Assets:                                     $500 million             Tax rate:                                  40 percent             Cost of new and old debt:       8 percent            Based on the residual dividend policy, the payout ratio is 60 percent. How large (in millions         of dollars) will the capital budget be? $ 43.2 $ 50.0 $ 64.8 $ 86.4 $108.0

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: 40​% ​long-term debt, 15​% preferred​ stock, and 45​% common stock equity​ (retained earnings, new common​ stock, or​ both). The​ firm's tax rate is 26​%.   Debt The firm can sell for ​$1005 a 13​-year, $1,000​-par-value bond paying annual interest at a 6.00​% coupon rate. A flotation cost of 2.5​% of the par value is required.   Preferred stock  7.00​% (annual dividend) preferred stock having a par value of ​$100 can be sold for ​$98. An additional fee of ​$5 per share must be paid to the underwriters.   Common stock  The​ firm's common stock is currently selling for ​$80 per share. The stock has paid a dividend that has gradually increased for many​ years, rising from ​$2.50 ten years ago to the ​$4.92 dividend​ payment, D0​, that the company just recently made. If…

The Black Bird Company plans an expansion. The expansion is to be financed by selling $21 million in new debt and $57 million in new common stock. The before-tax required rate of return on debt is 9.77% percent and the required rate of return on equity is 13.11% percent. If the company is in the 34 percent tax bracket, what is the weighted average cost of capital?