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Bad White [126]
3 years ago
10

Ring Technology has a capital budget of $850,000, it wants to maintain a target capital structure of 35% debt and 65% equity, an

d it also wants to pay a dividend of $400,000. If the company follows the residual dividend model, 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?
a. $ 904,875
b. $ 952,500
c. $1,000,125
d. $1,050,131
e. $1,102,638
Business
1 answer:
Bad White [126]3 years ago
3 0

Answer:

b. $ 952,500

Explanation:

The computation of the amount of the net income for earning to meet out the requirement is shown below:

Dividend = Net income - Target Equity ratio × Total capital budget

$400,000 = Net income - 0.65 × $850,000

$400,000 = Net income - $552,500

So, the net income is

= $400,000 + $552,500

= $952,500

Hence the Net income is $952,500

Therefore the correct option is b. $952,500

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Zoning rules continue to change and are updated to reflect the changing business situation and to direct, monitor and regulate potential commercial and residential area growth and development.

Thus from the given case that the hotel got in problem of non confirmation of zoning laws.

5 0
2 years ago
If a company's revenue is 50 billion usd a year, how much money does it make per hour
victus00 [196]
Company's revenue is 50 billion usd per year
money it makes per hour = ?
1 year = 365 days  and 1 day = 24 hours
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7 0
3 years ago
Chapman Machine Shop is considering a 4-year project to improve its production efficiency. Buying a new machine press for $576,0
DIA [1.3K]

Answer:

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A technique that should be considered must have special focus on the time value of money, the required rate of returns expected by the firm and other Cashflow considerations.

The Net Present Value (NPV) approach will be the best method to proceed with.

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b. If NPV is positive (Accept if it's a singular project, Accept the highest positive NPV if it's for mutually exclusive Projects)

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Kindly refer to the attached for detailed workings

6 0
3 years ago
Under which circumstance might you receive a tax refund from the IRS?
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5 0
3 years ago
The partners share profits and losses in the ratio of 5:3:2, respectively. The partners agreed to dissolve the partnership after
vovangra [49]

Answer:

$30,000

Explanation:

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Loss on sale of other assets is

= $150,000 - $50,000

= $100,000

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= $50,000

So,  

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= $30,000

6 0
2 years ago
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