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eduard
2 years ago
13

Grandin Inc. is evaluating its dividend policy. It has a capital budget of $625,000, and it wants to maintain a target capital s

tructure of 60% debt and 40% equity. The 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:
Anestetic [448]2 years ago
8 0

Answer:

47.37%

Explanation:

The capital budget is $625,000 out of which 40% is equity and the rest 60% is debt. The company forecasts the net income for the year to be $475,000. Grandin Inc. follows residual dividend policy and pays out all the residual income to its shareholders as dividend.

The portion of equity in the capital budget is $625,000 * 40% = $250,000

The net income potion which will be attributable to equity shareholders is

$250,000 / $475,000 = 47.37%

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The net pension liability (PBO minus plan assets) is decreased by: Multiple Choice Service cost. Expected return on plan assets.
Mumz [18]

Service cost

Answer: Option A.

<u>Explanation:</u>

The net pension liability is the amount by which the liability of the pension increases the total pension assets. This increases the troubles of the people who are leading a retired life. The lower the rate of interest, more are the liabilities on the retired person's life.

On the other hand when the total pension assets are more than the total pension liabilities, then it i known as the net pension assets.

7 0
3 years ago
Assume the real rate of return is 3.37% and the inflation rate is 1.47%. Find the nominal rate of return using the exact formula
Citrus2011 [14]

Answer:

4.89%

Explanation:

Real rate of return = 3.37%

Inflation rate = 1.47%

The nominal rate of return is computed as shown below:

= [ (1 + real rate of return) x (1 + inflation rate) ] - 1

= [ (1 + 0.0337) x (1 + 0.0147) ] - 1

= (1.0337 * 1.0147) - 1

= 1.04889539 - 1

= 0.04889539

= 4.889539%

= 4.89% approx.

7 0
3 years ago
Does the Constitution set down the rights of the people? Yes or No
Dmitry_Shevchenko [17]

Answer:

yes

Explanation:

the constitution does set down the rights of the people like right to freedom and right to equality

4 0
3 years ago
Read 2 more answers
This is a good question to ask during an interview A) How many vacation days do I get? B) What kind of products or services do y
jeka94

Answer:

C) How many hours of training will I need?

3 0
3 years ago
A 300 kg dragster accelerates from the rest to the final speed of 120 m/s in 400 m (about a quarter of a mile) and encounters an
Naddik [55]
Let P<span> be the average power output. The total amount of work done is </span><span><span>P*(7.3s)</span>)</span><span>. But the total amount of work done is also the sum of these two quantities:
1._ </span>The work done to overcome friction. 2._The kinetic energy of the dragster at the end of the 400 m. Then the first part of the work done is (1200N)*(400m)=480000 J.  
 Part 2 is given by the kinetic energy formula: 1/2*(300)*(120^2)=2160000 J.
<span>Taken together, that's 2640000 J.
</span>Divide by the time <span>(7.3s)</span><span> and you have average power output of about
</span><span> 361643.836 Watts and in HP is </span> 361643.836/745.7=<span><span>484.972289 HP</span></span>
7 0
3 years ago
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