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yaroslaw [1]
3 years ago
7

Blease Inc. has a capital budget of $625,000, and it wants to maintain a target capital structure of 60% debt and 40% equity. Th

e company forecasts a net income of $475,000. If it follows the residual dividend policy, what is its forecasted dividend payout ratio?
Business
1 answer:
Mashcka [7]3 years ago
7 0

Answer:

Forecasted Dividend Pay-out Ratio = 47.37%

Explanation:

Capital Budget = $625,000

Net Income = $475,000

Equity Ratio = 40%

Dividend to be paid = Net Income – Equity Ratio*Capital budget

Dividend to be paid =475000 – 40%*675000 = $225,000

therefore, we have that the fortecast dividend pay-out ratio will  be given by:

Forecasted Dividend Pay-out Ratio = Dividend to be paid/Net Income

Forecasted Dividend Pay-out Ratio = 225000/475000

Forecasted Dividend Pay-out Ratio = 47.368% or 47.37%

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we will now sow how these Transactions affect the gross domestic product

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2.US Company sells 200 Transistors to a Spanish company at $15 per case

Exports increase Gross domestic product. When a US Company sells 200 transistors to a Spanish Company at a price of $15 per transistor, Exports will increase by $3000. When export increase Gross domestic product will also increase by -$3000 ceteris par

+$3000 export = + 3000 Gross Domestic Product.

3. Jake US Citizen pays $1500 for a laptop he orders from microell (a US company)

This transaction will increase Consumer's domestic consumption which is represent by a Variable denoted by C in the Consumption equation. When Jake pays $1500, Consumption increases by $1500 which also increases Gross domestic Product by $1500 ceteris pa

+$1500 Consumption = + $1500 Gross domestic product

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Vedmedyk [2.9K]

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Therefore, conflict of interest always results in the scope bias. As the individual in the power can use his or her position that can lead to benefit of him or loss of others or both.

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2. Measurement  = Principle

3 Cost-benefit   = Constraint

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In this way the identification of the accounting terms would be done

The same is relevant too

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