In a(n) ________ economy, the vast majority of people engages in simple agriculture and consumes most of their output.

As a financial manager for WillPower, Inc, you have the following information: a) The company follows a residual dividend policy

8_murik_8 [283]

Answer:

a. Amount funded with equity is $4,800,000

b. Dividend is $3,200,000

c. Dividend Payout ratio is 40.00%

Explanation:

Note: This question is incomplete, and the complete one is as follows:

As a financial manager for WillPower, Inc, you have the following information: a) The company follows a residual dividend policy; b) The total capital budget for next year is likely to be $8,000,000; c) The forecasted level of earnings next year is $8,000,000; d) The target or optimal capital structure is a debt ratio of 40%;

Please answer the following questions:

a. What will be the amount funded with equity for the project ? (Keep the answer to a whole number. Example of answer format: $1,000,000)

b. Compute the amount of the dividend . (Keep the answer to a whole number. Example of answer format: $1,000,000)

c. Compute the dividend pay-out ratio . (Keep the answer to two decimals. Example of the answer format: 55.55%)

The following are therefore the explanation of the answers to the question:

a. What will be the amount funded with equity for the project ? (Keep the answer to a whole number. Example of answer format: $1,000,000)

Given that the target or optimal capital structure is a debt ratio of 40%, this implies that there will be 40% debt finance and 60% (100% - 40%) equity finance. Therefore, we have:

Amount funded with equity = Total capital budget for next year * Percentage of equity finance = 8,000,000 * 60% = $4,800,000

b. Compute the amount of the dividend. (Keep the answer to a whole number. Example of answer format: $1,000,000)

Since the company follows a residual dividend policy, it implies that the earnings available are employed to finance capital expenditure budget first before dividends are paid to the shareholders.

Since amount funded with equity is $4,800,000 as obtained in part a, it implies that this must be deducted first from the forecasted level of earnings next year to obtain the residual that will be paid as dividend as follows:

Dividend = Forecasted level of earnings next year - Amount funded with equity = $8,000,000 - $4,800,000 = $3,200,000

c. Compute the dividend pay-out ratio . (Keep the answer to two decimals. Example of the answer format: 55.55%)

Dividend payout ratio refers to the percentage of the earnings or net income of a company that is paid by the company to its shareholders as dividend. This can therefore be calculated

Dividend Payout ratio = Dividend / Earnings = $3,200,000 / $8,000,000 = 0.40, or 40.00%

Therefore, WillPower, Inc is expected to pay 40% of its earnings as dividend to its shareholders.

4 0

3 years ago

After weeks of protest in zuccotti park, nyc's "occupy wall street" divided into two camps: one composed of higher income protes

Slav-nsk [51]

A symbolic interactionist would be most interested in the relationship and nature of day-to-day exchanges between the two groups.
Symbolic interaction is a theory or a school of thought in sociology that explains social behavior in terms of how people interact with each other through symbols. The theory was formulated by Blumer in 1969, it states that people develop subjective interpretations of events based on their social interactions.

7 0

4 years ago

If the reserve ratio is 12.5 percent, then $5,600 of money can be generated by Select one: a. $64 of new reserves. b. $700 of ne

malfutka [58]

Answer:B. $700 of new reserves.

Explanation: Reserve ratio is the percentages of bank deposits which commercial banks must keep with them and not lend out, this is done by central bank in order to control inflation, interest rates etc

In ordinary terms reserve ratio is the percentage amount that is kept aside for future endeavours. Reserve ratio is very good to protect an organisation or a country during trying times.

A higher reserve ratio will reduce money lending rate and make commercial banks have less amounts to lend out.

If the reserve ratio is 12.5%, the dollar value of the amount that can be reserved from $5600.

The formula is as follows,the reserve ratio divided by one hundred multiplied by the amount. The reserve in Dollar value will be

Equal to (12.5%/100)*$5600= $700.

5 0

3 years ago

Less need for policy manuals, organization charts, and formal controls is a sign of shared values in a:

IRISSAK [1]

An organization which preaches empathy and hence instills a cultural value which resonates around togetherness will show low levels of harsh and formal control and flexible policies.

When an organization shows less need for policy manuals, then it exhibits its level of flexibility and accommodation.

Being less rigid in terms of being bent on formal guidelines and principles is a sign that the organization is empathic and promotes service to others.

Such corporate policy framework is positive and hence, shows the orgainiziation's commitment towards social inclusion.

Learn more : brainly.com/question/14378811?referrer=searchResults

4 0

3 years ago

Tina designed a new type of handbag that has proven to be very popular. She begins manufacturing these handbags on a large scale

WINSTONCH [101]

She opts for a distributorship franchise, under which she will license distributors to sell her handbags

Explanation:

The success of the entrepreneur was assisted by retailers and professional sales officers.

Such alliances could promote their goods in new geographical areas, place them in shops that would not even speak to small farmers, and offer useful services such as easy order fulfilment.

Nevertheless, retailers can be as hard to attract as supermarket customers. It needs patience, analysis and hard work to win them over.

In this scenario, Tina wants to sell her designed new type handbag with the help of licensed distributor.

4 0

3 years ago