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krek1111 [17]
4 years ago
5

McCann Publishing has a target capital structure of 35% debt and 65% equity. This year's capital budget is $850,000 and it wants

to pay a dividend of $400,000. If the company follows a residual dividend policy, how much net income must it earn to meet its capital budgeting requirements and pay the dividend, all while keeping its capital structure in balance?
Business
1 answer:
levacccp [35]4 years ago
4 0

Answer: $952500

Explanation: targeted equity ratio is 65% = 0.65

Capital budget = $850000

Dividend = net income - (target equity ratio × total budget)

400000 = N - (0.65 × 850000)

Make N the subject of formula

Net income N = $952,500

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Barbara Jones is interested in buying a five-year zero coupon bond with a face value of $1,000. She understands that the market
nordsb [41]

Answer:

Zero-cupon bond= $612.52

Explanation:

Giving the following information:

Face value= $1,000

Number of periods= 5 years

Interest rate= 10.3% = 0.103

<u>To calculate the price of the bond, we need to use the following formula:</u>

<u></u>

Zero-cupon bond= [face value/(1+i)^n]

Zero-cupon bond= [1,000 / (1.103^5)]

Zero-cupon bond= $612.52

7 0
3 years ago
Global ceos desire ___________ even more than profit growth, stimulating innovation, customer loyalty, and finding qualified emp
jekas [21]

Answer:

excellence in execution.

Explanation:

The excellence of management execution is a key feature for analyzing a company's long-term position. A global CEO should be aware of the importance that organizational success comes not just from a factor or periodic statement of profitability, but from a set of factors, such as personnel, financial and quality management that align the strategy in a way. effectively determine the organizational position in the market and vis-à-vis competitors.

5 0
3 years ago
Mamma's Diner was a small restaurant that was a popular hangout for many Bedford College students, but because of the owner's in
mamaluj [8]

Answer: Utilitarianism

Explanation:

Utilitarianism can he defined a moral theory that supports actions that boost overall pleasure or happiness and rebuff actions that lead to harm or unhappiness. A utilitarian philosophy aims to make the society a better place.

The maxim of utilitarianism is that a considerable amount of good should go to a considerable amount of people. Utilitarianism seeks to maximize well-being and happiness. Mama Diner's restaurant was closed because the principle of utilitarianism was not followed because handicapped students couldn't make use of bathroom stalls.

For example, if there is a new disease that kills people instantly when the affected person coughs around other people, the government might be forced to kill the person in order to save others.

8 0
4 years ago
You put up $80 at the beginning of the year for an investment. The value of the investment grows 2% and you earn a dividend of $
Evgen [1.6K]

If the value of the investment grows 2% and you earn a dividend of $8.00. Your HPR was 12%.

<h3>HOLDING PERIOD RETURN (HPR)</h3>

Using this formula

HPR=Investment grow+(Dividend/Beginning investment)

Let plug in the formula

HPR=2% + ($8/$80)

HPR=2% +10%

HPR=12%

Therefore If the value of the investment grows 2% and you earn a dividend of $8.00. Your HPR was 12%.

Learn more about HPR here:brainly.com/question/20383546

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5 0
2 years ago
According to Hackman and Oldham's job characteristics model, what type of employee would most likely be satisfied and perform at
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The type of employee that would most likely be satisfied and perform at a high level is motivated employee.

<h3>Who is Hackman and Oldham?</h3>

Richard Hackman and Greg Oldham developed a model which itself motivates employees for the jobs.

The model focuses on the perspective that if the job is not monotonous, it can  motivates the employee and would not feel discouraged to work.

Hence, the type of employee that would most likely be satisfied and perform at a high level is motivated employee.

Read more on about Hackman and Oldham here: brainly.com/question/13103980

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8 0
2 years ago
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