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barxatty [35]
4 years ago
12

Consider the case of Yellow Duck Distribution Company: Yellow Duck Distribution Company is expected to generate $180,000,000 in

net income over the next year. Yellow Duck Distribution has forecasted a capital budget of $83,000,000, and it wishes to maintain its current capital structure of 70% debt and 30% equity. If the company follows a strict residual dividend policy and makes distributions in the form of dividends, what is its expected dividend payout ratio for this year?
A. 81.86%
B. 64.63%
C. 86.17%
D. 73.24%
Business
1 answer:
vladimir2022 [97]4 years ago
3 0

Answer:

C. 86.17%

Explanation:

The computation of the expected dividend payout ratio is shown below:

Expected dividend pay out ratio = 100 - {(capital budget × equity ratio) ÷ (net income}  × 100

= 100 - {($83,000,000 × 30%) ÷ ($180,000,000} × 100

= 100 - (24,900,000 ÷ $180,000,000) × 100

= 100 - 13.83%

= 86.17%

All other information which is given is not relevant. Hence, ignored it

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dlinn [17]
The answer is individual level of analysis. The individual level of analysis finds the cause of happenings in individual leaders or the immediate circle of decision makers within a specific country. It focuses on human actors on the world stage classifying the characteristics of human decision making. For example, the cause of World War I is from the specific leaders in power at that time. Kaiser Wilhelm II is deliberated to be the level from which the cause created. It may have been his need for power to hide a sense of subordination, or it may have been his incapability to understand the details of statecraft, the way Otto von Bismarck did. Or it may have been his notion about the monarchy and German destiny. All three possibilities are drawn from an individual level of analysis. 
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3 years ago
An investment counselor calls with a hot stock tip. He believes that if the economy remains​ strong, the investment will result
mixer [17]

Answer:

6,000

Explanation:

The expected value from this investment can be calculated by possible values for random variables by multiplying them by their probability

DATA

Strong  = 30,000   , probability = 30%

Moderate = 10,000 , probability = 60%

Weak = -30,000 , probability = 10%

Calculation

Expected profit = Values x Probability

Expected profit = (30,000 x 30%) + (10,000 x 60%) + ( 30,000 x 10%)

Expected profit = 6,000 + 6,000 -6,000

Expected profit = 6,000

7 0
4 years ago
2. Joseph is an HR professional at a major financial institution. When one of the high-level managers retires, Joseph is asked t
tiny-mole [99]

The unethical behavior in this situation is that Joseph recommends that the hiring manager offer his friend a position, even though he knows he doesn't qualify for the role.

<h3 /><h3>Importance of ethics in the recruitment </h3>

Ethics corresponds to a guide to positive and fair behavior, so in the selection process, it is essential that the recruiter is impartial, empathetic and seeks to select a candidate for a vacancy according to their profile and qualifications, without privileging or harming other candidates.

Therefore, Joseph's attitude, based on his high hierarchical position, was considered unethical, as it is not right to privilege people in an organization based on their personal relationship.

It is essential that as a high-level manager, Joseph develops ethical behaviors that set an example for his team.

Find out more information about ethics here:

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7 0
3 years ago
On January 1, year 4, Griffin, Inc. purchased 12% of Hydra Co.’s common stock. At that time Griffin did not have the ability to
cricket20 [7]

Answer:

Only 35% of the dividend arising from September to December, 2014 would be recognized as revenue in the income statement.

Explanation:

The remainder of the income is not relevant as it was accounted for under the market value method because the share holding was below the associate shareholding. Under the market value method, gain and losses on the increase and decrease of market value of investment are recognized in the comprehensive income statement.

The equity method says that the income from the investment is only recognized if the shareholding is above the shareholding requirement of associate. So from the month the investment was considered as an associate investment which is September, 2014 and onwards, the firm must recognize dividends received from this date as an income in its financial statement.

4 0
3 years ago
Pina Colada Corp. had beginning inventory of $16500 at March 1, 2017. During the month, the company made purchases of $71500. Th
patriot [66]

Answer:

The cost of goods sold is $68970

Explanation:

The cost of goods sold is the cost of inventory that a company sells in a partcular period.

The cost of goods sold can be calculated as,

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4 0
3 years ago
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