Suppose a firm is paying dividend of $500000 out of net income of $2 million. What is the firm's payout ratio?

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A: Explanation:

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A: The conceptual formula is represented mathematically:

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A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

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Q: provide answer with explanation

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A: Invested Capital: It refers to that money that is invested by shareholders, lenders, and debt…

Q: Calculate

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A:

Q: What is the firm’s equity multiplier? (Please show work and explain)

A: Information Provided: Return on assets = 0.20 Return on equity = 0.25

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Q: 12.30% 13.36%

A: D0=Dividend =1.45 g=constant growth =6.5% Price of equity =22.5 D1=1.45(1.065)=1.544=Dividend next…