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krek1111 [17]
3 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]3 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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Select the correct answer.
34kurt

Answer:

I would say B

Explanation:

because like you need to be nice to everybody like its just the right thing to do and plus those existing customers might just be the ones who help u along the way u never know

hoped this helped lmk if it did

4 0
3 years ago
Manufacturing costs from a scraped poor-quality product are $6000 per year. AN investment in an employee training program can re
romanna [79]

Answer:

We see that Prog A will give an annual CF of 75%*$6000 = $4500

Prog B will give annual CF of 95%*$6000 = $5700

Disc Rate Kd = 20%

So PV of Annuity of $1 for 5 yrs with Kd = 20% is 2.9906

So NPV of Prog A = CF0+CF1+ ....+Cf5 = -12000+2.9906*4500 = $1,458

So NPV of Prog B= CF0+CF1+ ....+Cf5 = -20000+2.9906*5700 = $(2,954)

So Prog A is more effective as it gives a Positive NPV

8 0
3 years ago
In presentation mode, what happens when you switch between different worksheets?
liq [111]

Presentation mode will be maintained on the display. The presentation mode will continue to be active when switching between worksheets.

<h3>What is a presentation mode?</h3>

Users who need uninterrupted use of their software might use the presentation mode option. It assists in removing any bothersome pop-up windows, reducing CPU consumption, and preventing any disruption from antivirus operations.

<h3>How do I turn on presentation mode?</h3>

Use the shortcut keys Win + X on the keyboard. Select Mobility Center by clicking on it. To turn it on, select the Turn on button under Presentation Settings. Presentation Mode has been turned on.

<h3>What use does presentation mode serve?</h3>

In Present view, the audience may see your slides on the main screen while you control the show on a screen that is only accessible to you.

Learn more about presentation mode: brainly.com/question/14823196

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5 0
1 year ago
In organizational change, unfreezing can occur by:
vredina [299]

Answer: b. increasing the driving forces.

Explanation:

Driving forces analysis (DFA) this are ways used in understanding and accounting for changes in industrial level. The drivers used for this are clusters of trends which directly or collectively have influence on changes occurring in an industrial structure and a rival's competitive conduct. The word force used here is used to show that the said drivers can materially impact the firm's future.

7 0
2 years ago
the cost of land improvements are capitalized separately from land because land improvements tend to have a useful life.
lisabon 2012 [21]

Land improvements are capitalized separately from Land because land improvements have only a limited useful life.

Land is a special fixed asset which means that:

  • It is purchased for long term use
  • It is not depreciated because it lasts forever

Land improvements on the other hand, will not last forever. They will eventually wear out and need to be replaced. They are therefore capitalized separately from land so that they can be depreciated if need be.

In conclusion, land improvements are capitalized separately from land because they have a limited useful life.

<em>Find out more at brainly.com/question/14436052.</em>

4 0
3 years ago
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