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Oduvanchick [21]
2 years ago
5

McCann Publishing has a target capital structure of 35% debt and 65% equity.This year's capital budget is $850,000 and it wants

to pay a dividend of $400,000.If the company follows a residual dividend policy,how much net income must it earn to meet its capital budgeting requirements and pay the dividend,all while keeping its capital structure in balance?A) $904,875B) $952,500C) $1,000,125D) $1,050,131E) $1,102,638
Business
1 answer:
Nataliya [291]2 years ago
8 0

Answer:

B) $952,500

Explanation:

Calculation for how much net income must it earn to meet its capital budgeting requirements and pay the dividend

Using this formula

Net income = Dividends + (Capital budget ×Equity)

Let plug in the formula

Net Income=$400,000+($850,000×65%)

Net Income=$400,000+$552,500

Net Income=$952,500

Therefore how much net income must it earn to meet its capital budgeting requirements and pay the dividend dividend,all while keeping its capital structure in balance is $952,500

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Answer: The correct answer is YES it is admissible as evidence of the plumber's fault.

Explanation: An Evidence has probative value if it tends to prove an issue. The testimony of the homeowner of the regarding the plumber's response is a party admission. It is admissible as a hearsay exemption under Rule 801(d)(2)(A) which explains that a statement or statemens made by a party in a case cannot be excluded as hearsay when offered against him by the opponent. As such, the statement is a probative evidence.

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3 years ago
Are contractually-stipulated cooperation programs between unions and management a realistic and workable concept? Why or why not
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3 years ago
"Water and Power Co. is a small company and is considering a project that will require $650,000 in assets. The project will be f
musickatia [10]

Answer:

The answer is =16.7%

Explanation:

Earnings before interest and taxes(EBIT) = $145,000

Tax rate is 25%

Therefore, the applicable tax rate on the earnings is 100% - 25% = 75%

So the Net income is 0.75 x $145,000

Net income = $108,750

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ROE(Return on Equity) = net income/equity

$108,750/$650,000

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7 0
3 years ago
Using the information below for Sundar Company; determine the total manufacturing costs added during the current year:
defon

Answer: $96,500

Explanation:

Manufacturing cost includes all the costs that went into production in a period including direct costs and manufacturing overhead:

= Direct materials + Direct labor + Manufacturing Overhead

Manufacturing overhead = Beginning work in process + Factory overhead - Ending work in process

= 11,200 + 52,600 - 11,800

= $52,000

Manufacturing cost = 19,500 + 25,000 + 52,000

= $96,500

3 0
3 years ago
Besides the actual mortgage payment, which also factors into the monthly payment on a home?
Pie
Aside from the actual mortgage payments, you also pay for your monthly property taxes, homeowner's insurance, and home repairs.

Sometimes homeowners also pay for monthly dues to their homeowners association. This monthly dues include water, sewer, garbage, and maintenance of other amenities like clubhouse, pool, and tennis courts. 
5 0
3 years ago
Read 2 more answers
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