XYZ Corp has a capital budget of $10M for next year. The company has a target capital structure of 65% Equity / 35% Debt. If net income next year is projected to be $9M and the company follows a residual distribution model and pays all distributions as dividends, what will be its payout ratio?
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XYZ Corp has a capital budget of $10M for next year. The company has a target capital structure of 65% Equity / 35% Debt. If net income next year is projected to be $9M and the company follows a residual distribution model and pays all distributions as dividends, what will be its payout ratio?
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- Strategic system Inc. expects to have net income of 800000 during the next year. Its target and current capital structure are 40 percent debt and 60 percent equity. The director of capital budgeting has determined that the optimal capital budget for next year is 1.2 million. If strategic uses residual dividend model to determine next year dividend payout. What is the expected payout ratio?Express Industry’s expected net income for next year is $1.6 million. Its target, and current, capital structure is 30 percent debt and 70 percent common equity. The director of capital budgeting has determined that the optimal capital budget for next years is $2 million. Suppose Express uses the residual dividend policy to determine next year’s dividend. What is the expected dividend payout ratio? Can we use the residual dividend policy to set dividends on an annual basis? Explain why.Strategic Systems Inc. expects to have net income of P800,000 during the next year. Its target, and current, capital structure is 40 percent debt and 60 percent common equity. The Director of Capital Budgeting has determined that the optimal capital budget for next year is P1.2 million. If Strategic uses the residual dividend model to determine next year's dividend payout, the expected dividend payout ratio would be %
- Fena Company has a capital budget of P1.2 million. The company wants to maintain a target capital structure that is 60% debt and 40% equity. The company forecasts that its net income this year will be P600,000. If the company follows a residual distribution model and pays all distributions as dividends, what will be its payout ratio?A firm expects to have a net income of $8,000,000 during the next year. Its target capital structure is 50% debt and 50% equity. The company has determined that the optimal capital budget for the coming year is $6,000,000. If the firm follows a residual distribution policy (with all distributions in the form of dividends) to determine the coming year's dividend, then what is the firm's dividend payout ratio? O 28.5% O 40.0% O 50.5% O 62.5%Strategic Systems, Inc., expects net income of $800,000 for next year. Its target capital structure is 40 percent debt and 60 percent common equity. The Director of Capital Budgeting has determined that the optimal capital budget for next year is $1.2 million. If Strategic uses the residual dividend policy to determine next year’s dividend payout, what is the expected payout ratio? 0% 10% 67% 80% 90%
- Mortal Inc. expects to have a capital budget of $575,000 next year. The company wants to maintain a target capital structure with 35% debt and 65% equity, and its forecasted net income is $500,000. If the company follows the residual dividend model, how much in dividends, if any, will it pay? a. $111,100 b. $126,250 c. $132,563 d. $118,675 e. $113,625 Portland Plastics Inc. has the following data. If it follows the residual dividend model, what is its forecasted dividend payout ratio? Capital budget $13,500 % Debt 40% Net income (NI) $13,650 a. 42.29% b. 44.73% c. 49.20% d. 40.66% e. 32.53%A firm expects to have net income of $5,000,000 during the next year. The company’s target capital structure is 60% debt and 40% equity. The company's director of capital budgeting has determined that the optimal capital budget for the coming year is $5,000,000. If MSL Tech follows a residual distribution policy (with all distributions in the form of dividends) to determine the coming year’s dividend, then what is the firm’s expected dividend payments? $2,000,000 $3,000,000 $5,000,000 $6,000,000 Using the data from Question 31, find the dividend payout ratio for the company. 20% 40% 60% 50%Puckett Products is planning for $5 million in capital expenditures nextyear. Puckett’s target capital structure consists of 60% debt and 40% equity.If net income next year is $3 million and Puckett follows a residual distribution policy with all distributions as dividends, what will be its dividendpayout ratio?
- Puckett Products is planning for $3 million in capital expenditures next year. Puckett's target capital structure consists of 60% debt and 40% equity. If net income next year is $2 million and Puckett follows a residual distribution policy with all distributions as dividends, what will be its dividend payout ratio? Round your answer to two decimal places.Altamonte Telecommunications has a target capital structure that consist of 70% debt and 30% equity. The company anticipates that its capital budget for the upcoming year will be $2,000,000. If Altamonte reports net income of $1,100,000 end it follows a residual, dividend, payout policy, what will be its dividend payout ratio? Round your answer to two decimal places.Target Capital Structure of Moor Systems Inc is 60% common equity and 40% debt for long time. Now it is expecting to have net income of Rs. 800,000 during the next year. The Director of Capital Budgeting has determined that the optimal capital budget for next year is Rs. 1.2 million. If company uses the residual dividend model to determine next year’s dividend payout, what is the expected dividend for next year?
