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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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Answer:

Total cost= $15,100

Explanation:

Giving the following information:

The job cost record for Job A61 on March 1 showed a balance of $5,200.

Job A61:

March:

Direct materials= $2,300.

Direct Labor= $4,000.

Manufacturing overhead is allocated based on direct labor cost. The rate is 90% of direct labor cost.

MOH= 4000*0.9= $3,600

Total cost= 5,200 + 2,300 + 4,000 + 3,600= $15,100

8 0
3 years ago
Green Corporation hires six individuals on January 4, 2019, all of whom qualify for the work opportunity credit. Three of these
ivann1987 [24]

Answer: $4,650 Tax Credit

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Green Corporation is entitled to get 40% on wages paid per year on workers who worked for at least 400 hrs and 25% for at least 120 hrs

Green Corporation had 2 sets of workers in this category and they are:

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to get the work opportunity credit for 2019:

$8,500 * 40%+ $5,000 *25% = $3,400+$1,250= $4,650

3 0
3 years ago
The fundamental relationship between savings and investment spending in an economy is that: A. savings will increase as investme
Romashka-Z-Leto [24]

The correct option is B

<u>Explanation:</u>

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Therefore, Option B is correct

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3 years ago
Timothy McGreggor, Attorney, P.C., began the year with total assets of $129,000, liabilities of $77,000, and stockholders’ equit
Ahat [919]

Answer:

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The net income for the year is Revenue - Expenses

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Add: Net income for the year                  $  79,000

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Ending stockholders' equity                    $  68,000

7 0
3 years ago
Chris gilbert, 1966-68, was the first person in college football history, and the only ut player, to rush for more than 1000 yar
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Time ran by Chris Gilbert, T = D x S
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