Suppose a firm pays total dividends of $986,000 out of net income of $2.9 million. What would the firm’s payout ratio be? (Round your answer to 2 decimal places.)
Payout ratio = Dividends / Net income
Payout ratio = $986,000 / $2,900,000
Payout ratio = 0.34
Suppose a firm pays total dividends of $986,000 out of net income of $2.9 million. What...
Suppose a firm pays total dividends of $1,500,000 out of net income of $6.0 million. What would the firm’s payout ratio be? (Round your answer to 2 decimal places.)
19) Suppose a firm pays total dividends of $320,000 out of net income of $2.7 million. What would the firm's payout ratio be? A) .32 B) 1.19 C) .119 D) 8.438 20) Calculating Fees on a Loan Commitment You have approached your local bank for a start-up loan commitment for $1,500,000 needed to open an auto repair store. You have requested that the term of the loan be one-year. Your bank has offered you the following terms: size of loan...
The Hastings Sugar Corporation has the following pattern of net income each year, and associated capital expenditure projects. The firm can earn a higher return on the projects than the stockholders could earn if the funds were paid out in the form of dividends. Profitable Capital Expenditure $ 7 million Year Net Income $18 million 10 million million 20 million 15 million million million The Hastings Corporation has 2 million shares outstanding (The following questions are separate from each other)....
Dividend Payout The Wei Corporation expects next year's net income to be $10 million. The firm is currently financed with 45% debt. Wel has $8 million of profitable investment opportunities, and it wishes to maintain its existing debt ratio. According to the residual distribution model (assuming all payments are in the form of dividends), how large should Wel's dividend payout ratio be next year? Round your answer to two decimal places. %
The Hastings Sugar Corporation has the following pattern of net income each year, and associated capital expenditure projects. The firm can earn a higher return on the projects than the stockholders could earn if the funds were paid out in the form of dividends. Year Net Income Profitable Capital Expenditure 1 $ 14 million $ 8 million 2 18 million 11 million 3 9 million 6 million 4 20 million 8 million 5 23 million 9 million The Hastings Corporation...
The Hastings Sugar Corporation has the following pattern of net income each year, and associated capital expenditure projects. The firm can earn a higher return on the projects than the stockholders could earn if the funds were paid out in the form of dividends. Year Net Income Profitable Capital Expenditure 1 $ 12 million $ 8 million 2 19 million 11 million 3 15 million 7 million 4 18 million 8 million 5 18 million 8 million The Hastings Corporation...
(Dividend payout ratio) Simpson Energy earned $ 2.3 million in net income last year and for the first time ever paid its common stockholders a cash dividend of $ 0.08 per share. The firm has 9.4 million shares outstanding. What was Simpson's dividend payout ratio? Simpson's dividend payout ratio was _______% (Round to two decimal places) (Cost of preferred stock) The preferred stock of Texas Southern Power Company sells for $39 and pays $8 in dividends. The net price of...
The Hastings Corporation has 3 million shares outstanding (The following questions are separate from each other). a. If the marginal principle of retained earnings is applied, how much in total cash dividends will be paid over the five years? (Enter your answer in millions.) Total cash dividends in Millions:_____________________ b. If the firm simply uses a payout ratio of 30 percent of net income, how much in total cash dividends will be paid? (Enter your answer in millions and...
The Wei Corporation expects next year's net income to be $10 million. The firm is currently financed with 50% debt. Wei has $12 million of profitable investment opportunities, and it wishes to maintain its existing debt ratio. According to the residual distribution model (assuming all payments are in the form of dividends), how large should Wei's dividend payout ratio be next year? Round your answer to two decimal places.
In 2015, the Keenan Company paid dividends totaling $3,490,000 on net income of $13 million. Note that 2015 was a normal year and that for the past 10 years, earnings have grown at a constant rate of 9%. However, in 2016, earnings are expected to jump to $20.8 million and the firm expects to have profitable investment opportunities of $10.4 million. It is predicted that Keenan will not be able to maintain the 2016 level of earnings growth because the...