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MA_775_DIABLO [31]
3 years ago
8

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

at its capital budget for the upcoming year will be $1,000,000. If Altamonte reports net income of $1,100,000 and it follows a residual dividend payout policy, what will be its dividend payout ratio? Round your answer to two decimal places.
Business
1 answer:
Mazyrski [523]3 years ago
8 0

Answer:

59.09%

Explanation:

Dividend paid:

= Net income - (Weight of equity × Capital budget)

= 1,100,000 - (0.45 × 1,000,000)

= $650,000

Hence,

Dividend payout ratio = Dividend ÷ net income

                                     = $650,000 ÷ 1,100,000

                                     = 59.09%(Approx).(or 0.5909 approx).

Therefore, the dividend payout ratio is 59.09%.

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olga55 [171]

Answer:bruuuuuuuuuuuuuuuuuuuuh

Explanation:

6 0
3 years ago
The purpose of the work opportunity tax credit is to encourage employers to hire individuals from specified target groups tradit
Yuki888 [10]

Answer:

true

Explanation:

  • The given statement is true here because the purpose of Work Opportunity Credit is to encourage employers to hire people who are facing employment barriers and are resulting in high unemployment.
  • And examples of the target group are unemployed ex-servicemen, food stamp recipients etc..
  • so this is true statement

5 0
3 years ago
In mid-2010, Hewlett-Packard Company (HP) acquired Palm Computing Inc., a manufacturer of personal devices and smartphones. Befo
Lelechka [254]

Answer:A. Define the business mission

Explanation: Define the Business mission is the processes involved in tying to understand a given business,it helps to know the aims and objectives,the present situation and the impact a given business has.

In the case of Hewlett-Packard Company (HP) acquired Palm Computing Inc., HP will try to know how Palm computing has fared through the years and what impact will it have on his own business objectives when it is fully acquired.

6 0
3 years ago
A growing trend to "Buy American" may encourage U.S. automakers to increase political pressure on Washington to pass legislation
Kazeer [188]

Answer:

C) a positive result from regulatory and economic environmental forces.

Explanation:

In the short run the whole economy will benefit, more American jobs will be created, consumers will probably get good cars at even lower prices, but on the long run the scenario may not be that good for everyone. If Toyota builds the plant, it will be the result of economic and political pressures, and that is a game that two can play, just ask farmers about the trade deal with China.

On the other hand, this is a type of deja vu (or been there, done that), and it ended up with GM and Chrysler bankrupt and Ford barely surviving. This types of policies were enforced in the 1980s by president Reagan and the famous "Made in the USA" by Bruce Springsteen. Back then Honda had a small factory and Toyota was starting to consider building a plant in the US, Nissan hadn't showed up yet. Fast forward a few years and the only good American vehicles are pickups, the Japanese brands wiped out the rest. The country is full of Camrys, Accords, Civics, Corollas, CRVs and Rav4s. They are great cars, too great for the American car manufacturers to compete against. Who knows, with this type of policies maybe in 10 years the only American car manufacturer left will be Tesla.

This is like playing with fire on top of a fuel truck.

5 0
3 years ago
A U.S. company consolidates a VIE with which it has a contractual relationship, but no equity investment. If the company and the
Alex_Xolod [135]

Answer:

The correct is the VIE's fair value.

Explanation:

The fair value of a financial asset or liability on a given date is understood as the amount for which it could be delivered or liquidated, respectively, on that date between two parties, independent and experts in the field, acting freely and prudently, under conditions of market. The most objective and usual reference to the fair value of a financial asset or liability is the price that would be paid for it in an organized, transparent and deep market ("quoted price" or "market price").

When there is no market price for a given financial asset or liability, it is used to estimate its fair value to that established in recent transactions of analogous instruments and, failing that, to mathematical valuation models sufficiently contrasted by the international financial community. In the use of these models, the specific peculiarities of the asset or liability to be valued and, in particular, the different types of risks associated with the asset or liability are taken into account. Notwithstanding the foregoing, the limitations of the valuation models developed and the possible inaccuracies in the assumptions and parameters required by these models may result in the estimated fair value of an asset or liability not exactly matching the price at which the asset or liability could be delivered or liquidated on the date of its valuation.

7 0
4 years ago
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