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olchik [2.2K]
3 years ago
8

Altamonte Telecommunications has a target capital structure that consists of 45% debt and 55% equity. The company anticipates th

at its capital budget for the upcoming year will be $1,000,000. If Altamonte reports net income of $1,200,000 and it follows a residual dividend payout policy, what will be its dividend payout ratio?
Business
1 answer:
Nana76 [90]3 years ago
6 0

Answer:

Dividend payout ratio=0.5417

Explanation:

Dividend paid=Net income-(Weight of equity*Capital budget)

=1,200,000-(0.55*1,000,000)

which is equal to

=$650,000

Hence dividend payout ratio=dividend/net income

=$650,000/1,200,000

which is equal to

=54.17%(Approx).(or 0.5417 approx).

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The market rate of return is 12.65 percent and the risk-free rate is 3.1 percent. Galaxy Co. has 15 percent more systematic risk
Bess [88]

Answer:

11.18%

Explanation:

The firm average cost of equity is shown below:

Under Dividend growth, the common stock is

= dividend growth rate + dividend yield

= 3.75% + 4.53%

= 8.28%

Under CAPM, the common stock is

= Risk-free rate of return + Beta × (Market rate of return - risk-free rate of return)

=3.1% + 1.15 × (12.65% - 3.1%)

= 14.08%

Now the average cost of equity of the firm is

= (8.28% + 14.08%) ÷ 2

= 11.18%

4 0
3 years ago
Zahn Inc. sold 11,500 annual magazine subscriptions for $61 during December 20Y4. These new subscribers will receive monthly iss
stiv31 [10]

Answer:

                                       Zahn Inc.

            Current Liabilities Section of the Balance Sheet

                                   March 31, 20Y5

Current liabilities                                                       Amount

Accounts payable                                                      $22,700

Accrued wages payable                                             $6,700

Accrued interest payable                                           $3,080

($123,200 * 5% * 6/12)  

Notes payable                                                             $123,200

Advances on magazine subscriptions                       $526,125

(11,500 * $61 * 9/12)

Total current liabilities                                                $681,805

4 0
3 years ago
The norm of reciprocity select one:
viktelen [127]

Answer: a. suggests that when we receive something from another person we should respond in the future with a favor for them. 

The norm of reciprocity<span> is repaying in kind what another person has done for us. It is a favorable response given to each other for benefits received by returning it with benefits also. Responding to harms with either indifference or hostility, also. </span>

4 0
3 years ago
Tracy managed a project for a publishing company. her team worked with a college professor to publish a new math textbook. which
Semenov [28]

The scenario that  illustrates a resource risk when Tracy managed a project for a publishing company is option D. The copy editor for the textbook becomes seriously ill, so Tracy must hire a new copy editor.

<h3>What is resource risk ?</h3>

A resource risk  can be described as a  chance that  is been assumed that someone  will fail to meet a goal as a result of lack of resources.

This is because the Resources can i encompass the financing, time, skilled workers and  what is  needed to achieve a particular goal, hence scenario that  illustrates a resource risk when Tracy managed a project for a publishing company is  copy editor for the textbook becomes seriously ill, so Tracy must hire a new copy editor.

The option for the question are :

A. The author thought that the publishing team would create the end-of-chapter questions and answers.

B. The original estimate for binding the books was two weeks. The bindery informs Tracy that it will take three weeks to complete the binding process.

C. The professor refuses to approve the cover of the book.

D. The copy editor for the textbook becomes seriously ill, so Tracy must hire a new copy editor.

Learn more on government at:

brainly.com/question/17544018

#SPJ1

4 0
1 year ago
Suppose the world population today is 7 billion, and suppose this population grows at a constant rate of 3% per year from now on
oksano4ka [1.4K]

Answer:

a) P(t=100) = 7 e^{0.03*100}=140.599 billion

b) P(t=0) = 7 e^{0.03*0}=7 billion

P(t=1) = 7 e^{0.03*1}=7.21 billion

P(t=2) = 7 e^{0.03*2}=7.43 billion

P(t=10) = 7 e^{0.03*10}=9.45 billion

P(t=25) = 7 e^{0.03*25}=14.82 billion

P(t=50) = 7 e^{0.03*50}=31.37 billion

c) Figure attached

d) Figure attached

Explanation:

The proportional model on this case would be given by:

\frac{dP}{dt} = kP

Where P is the population size, t the time on years and k a constant.

We can reorder this expression like this:

\frac{dP}{P} = k dt

If we integrate both sides we got:

ln|P| = kt + C

And using exponentials on both sides we got:

P(t) = e^{kt} e^C = P_o e^{kt}

Where P_o=7 billion  represent the initial amount for the starting year t=0.

The rate on this case is given r =3\% = 0.03, so then our model would be given by:

P(t) = 7 e^{0.03t}

Part a

For this case we just need to replace t=100 and we got:

P(t=100) = 7 e^{0.03*100}=140.599 billion

Part b

For this case we have the following:

P(t=0) = 7 e^{0.03*0}=7 billion

P(t=1) = 7 e^{0.03*1}=7.21 billion

P(t=2) = 7 e^{0.03*2}=7.43 billion

P(t=10) = 7 e^{0.03*10}=9.45 billion

P(t=25) = 7 e^{0.03*25}=14.82 billion

P(t=50) = 7 e^{0.03*50}=31.37 billion

Part c

The graph is on the first figure attached.

Part d

If we take a log-log scale we have the following values

We need to exclude the point t=0 since the natural log for 0 is not defined.

ln 1 =0 , ln 2= 0.693, ln 10=2.30, ln 25 =3.22, ln 50= 3.91

The result would be the figure 2 attached. And we see a better result for the graph.

3 0
3 years ago
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