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Sonbull [250]
3 years ago
9

The projected capital budget of Kandell Corporation is $1,000,000, its target capital structure is 60% debt and 40% equity, and

its forecasted net income is $550,000. If the company follows a residual dividend policy, what total dividends, if any, will it pay out?
a. $122,176
b. $128,606
c. $135,375
d. $142,500
e. $150,000
Business
2 answers:
Ira Lisetskai [31]3 years ago
8 0

Answer:

The correct answer is option (e).

Explanation:

According to the scenario, the computation of the given data are as follows:

Capital budget = $1,000,000

Debt = 60%

Equity = 40%

Net income = $550,000

So, we can calculate the total dividend by using following formula:

Total dividend = net income - ( Equity × Capital budget )

= $550,000 - ( 40% × $1,000,000 )

= $550,000 - $400,000

= $150,000

Stells [14]3 years ago
6 0

Answer:  e

150,000

Explanation:

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B, disgorgement

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2 years ago
A real estate broker takes an exclusive right to sell listing from a seller for $400,000. A buyer makes an offer for $375,000, w
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5 0
3 years ago
Which of the following statements regarding an internal rate of return analysis is false?
gulaghasi [49]

Answer: Option D

Explanation: Internal rate of return ,denoted as IRR, is the rate at which the net present value of a capital investment is zero. It is the rate at which the cash flows of the investment are discounted back to calculate the present value.

While, required rate of return is that return which an investor expects to achieve over time from a capital project.

Thus, one would only select a capital project only if the NPV of a project is positive which can only happen when the return on investment, that is, IRR, is greater than cost of capital, that is, required rate of return.

4 0
3 years ago
A 10-year semi-annual coupon bond with an $1000 par value pays an annual coupon rate of 6% and the market requires 8% APR. What
arlik [135]

Answer:

Coupon= $30 per period.

20 period for semi annual coupon payment.

28.148% discount rate

Explanation:

1.) Coupon rate * face value of bond = coupon

semi annual rate =6%/2=3%

Coupon= 1000 *3%= $30 per period.

2.) t= number of periods = years of maturity * coupon payment semi-annual

t= 10 * 2 = 20 periods.

3. Discount rate formula =C+[(F-P)/t] / (F+P/2)

where C=coupon payment annual

F= face value of security

P=price of security= 1000 *8%=80

t= years of maturity.

so we have⇒ 60+[(1000-80)/10]/(1000+80)/2

=152/540

=28.148%

4 0
3 years ago
Need asap solve the variable please
Mariulka [41]
X=-3.5 is the answer if you are allowed to have negatives as your answer
5 0
2 years ago
Read 2 more answers
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