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barxatty [35]
3 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]3 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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if the marginal propensity to save is 0.12 the marginal propensity to consume(mpc) is the multiplier is
Vlad [161]

Answer:

If the marginal propensity to save is 0.12, the marginal propensity to consume(mpc) is 0.88, and the multiplier is 8.33.

Explanation:

From the question, we are given the following:

mps = Marginal propensity to save = 0.12

The marginal propensity to consume (mpc) and the multiplier can therefore be calculated as follows:

mpc = 1 - mps ........................ (1)

Substituting the values for mps into equation (1), we have:

mpc = 1 - 0.12

mpc = 0.88

Also, we have:

Multiplier = 1 / mps ..................... (2)

Substituting the values for mps into equation (2), we have:

Multiplier = 1 / 0.12

Multiplier = 8.33

Therefore, if the marginal propensity to save is 0.12, the marginal propensity to consume(mpc) is 0.88, and the multiplier is 8.33.

8 0
3 years ago
an organization's __ refers to all relevant forces inside a firm's boundaries, such its mangers, employees, resources, and organ
Lorico [155]

Answer: Internal Environment

Explanation: An organization's internal environment refers to all relevant forces inside a firm's boundaries, such its mangers, employees, resources, and organizational culture.

5 0
3 years ago
_____ is a delivery model for software in which you pay for software on a pay-per-use basis instead of buying the software outri
zhuklara [117]

Answer:

b. SaaS

Explanation:

The full form of SaaS is software as a service. It is a software which is to be paid by per user rather than buying the outright of the software. It is a subscription based where the user must have to pay the subscription fees on a monthly or yearly basis. When the subscription tenure is expired the user must have to pay the charges again to take the service

Therefore the option b is correct

3 0
3 years ago
When a liability is first recorded, it is _____. reported as a current liability. reported as a long-term liability. measured in
bekas [8.4K]

Answer:

measured in terms of the probable future payment of assets or services that a company is presently obligated to make as a result of past transactions or events.

Explanation:

According to my research on financial accounting terms, the term liability is defined as the state of being legally responsible for something (dept such as auto or student loans). When a liability is first recorded it is measured in terms of the probable future payment of assets or services that a company is presently obligated to make as a result of past transactions or events. Basically calculating the amount of future payments that need to be made by the dept owner.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

7 0
4 years ago
Many automobile companies have custom options available for disabled people.
bazaltina [42]
<span>True. Many automobile companies offer adapted cars for disabled people, for example offering adjusted hand controls, altering access to the vehicle so it is wheelchair accessible or adjusting the space in the back of the vehicle so a wheelchair or mobility scooter can fit.</span>
8 0
3 years ago
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