Question

Chancellor Industries has retained earnings avab of $1 29 million The firm plans to make two investments that require financi
0 0
Add a comment Improve this question Transcribed image text
Answer #1

rate positively ..

i Total investment required =        2,805,784
985784+1820000
ii Financing from equity = 37%
iii=i*ii Equity amount required=        1,038,140
iv retained earning=        1,290,000
v=iv-iii Amount for dividend =            251,860
Ans =            251,860
Add a comment
Know the answer?
Add Answer to:
Chancellor Industries has retained earnings avab of $1 29 million The firm plans to make two...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Chancellor Industries has retained earnings available of 51 11 milion. The firm plans to make two...

    Chancellor Industries has retained earnings available of 51 11 milion. The firm plans to make two investments that require financing of $847215 and 5157 million respectively. Chancellor uses a target capital structure with 64% debt and 36% equity Apply the residual theory to determine what dividends if any, can be paid out and calculate the resulting dividend payout rabo The dividend amount. If any that can be paid out is Round to the nearest dollar)

  • Chancellor Industries has retained earnings available of $1.29 million. The firm plans to make two investments...

    Chancellor Industries has retained earnings available of $1.29 million. The firm plans to make two investments that require financing of $985,784 and $1.82 million, respectively. Chancellor uses a target capital structure with 63 % debt and 37 % equity. Apply the residual theory to determine what dividends, if any, can be paid out, and calculate the resulting dividend payout ratio The dividend amount, if any, that can be paid out is $(Round to the nearest dollar) The board of Kopi...

  • Kuhn does not have any retained earnings available to finance this project, so the firm will have to issue new common stock to help fund it. Its common stock is currently selling for $22.35 per share, and it is expected to pay a dividend of $2.78 at the e

    Kuhn Co. is considering a new project that will require an initial investment of $4 million. It has a target capital structure of 35% debt, 2% preferred stock, and 63% common equity. Kuhn has noncallable bonds outstanding that mature in five years with a face value of $1,000, an annual coupon rate of 10%, and a market price of $1,050.76. The yield on the company’s current bonds is a good approximation of the yield on any new bonds that it...

  • Assigned Problem 1 David Rose Inc. forecasts a capital budget of $500,000 next year with forecasted net income...

    Assigned Problem 1 David Rose Inc. forecasts a capital budget of $500,000 next year with forecasted net income of $400,000. The company wants to maintaina target capital structure of 30 % debt and 70% equity. If the company follows the residual dividend policy, how much in dividends, if any, will it pay? Assigned Problem 2 The following data apply to Elizabeth's Electrical Equipment: All inputs are in millions $20,000 $1,000 $6,000 300 Value of operations Short-term investments Debt Number of...

  • I need Help with section three and for section 1 and 2 to be looked over. I think I have the write answers just needing...

    I need Help with section three and for section 1 and 2 to be looked over. I think I have the write answers just needing help. Capital Budgeting Assignment – Part 1 CAPITAL BUDGETING CASE STUDY ANALYSIS ACME Inc. is a multinational conglomerate corporation providing a wide range of goods and services to its customers. As part of its budgeting process for the next year, it has several projects under consideration so it must decide which projects should receive capital...

  • CASE 1-5 Financial Statement Ratio Computation Refer to Campbell Soup Company's financial Campbell Soup statements in...

    CASE 1-5 Financial Statement Ratio Computation Refer to Campbell Soup Company's financial Campbell Soup statements in Appendix A. Required: Compute the following ratios for Year 11. Liquidity ratios: Asset utilization ratios:* a. Current ratio n. Cash turnover b. Acid-test ratio 0. Accounts receivable turnover c. Days to sell inventory p. Inventory turnover d. Collection period 4. Working capital turnover Capital structure and solvency ratios: 1. Fixed assets turnover e. Total debt to total equity s. Total assets turnover f. Long-term...

  • 1. Alaa works for a pharmaceutical company that has developed a new drug. The patent on...

    1. Alaa works for a pharmaceutical company that has developed a new drug. The patent on the drug will last 17 years. She expects that the drug’s profits will be $2 million in its first year and that this amount will grow at a rate of 5% per year for the next 17 years. Once the patent expires, other pharmaceutical companies will be able to produce the same drug and competition will likely drive profits to zero. What is the...

  • Caterpillar Inc. 2017 2016 5 S 51,822 2,900 54,722 42,676 2,786 45,462 35,773 2,764 38,537 STATEMENT...

    Caterpillar Inc. 2017 2016 5 S 51,822 2,900 54,722 42,676 2,786 45,462 35,773 2,764 38,537 STATEMENT 1 Consolidated Results of Operations for the Years Ended December 31 Dollar is willions cat pershare dal Sales and revenues Sales of Machinery, Energy & Transportation Revenues of Financial Products Total sales and revenues Operating costs Cost of goods sold Selling, general and administrative expenses Research and development expenses Interest expense of Financial Products Goodwill impairment charge Other operating incomel expenses Total operating costs...

  • The Coca-Cola Company and PepsiCo, Inc. The financial statements of Coca-Cola and PepsiCo are presented in...

    The Coca-Cola Company and PepsiCo, Inc. The financial statements of Coca-Cola and PepsiCo are presented in Appendices C and D, respectively. The companies' complete annual reports, including the notes to the financial statements, are available online. Instructions Use the companies' financial information to answer the following questions. a. Based on the information contained in these financial statements, determine each of the following for each company. 1. Cash used in (for) investing activities during 2017 (from the statement of cash flows)....

  • JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per...

    JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT