Silver Company needs $1,000,000 in order to buy a new equipment for its business Silver's net...
Silver Company needs $1,000,000 in order to buy a new equipment for its business. Silver’s net income is $950,000. Their target capital structure is D/E=1/3. How much Silver can pay out as dividends? Select one: a. $220,000 b. $200,000 c. $210,000 d. $230,000
1.Big company needs $800,000 in order to buy a new equipment for its business. Big net income is $1,300,000. Their target capital structure is D/E = 1/3 how much big can pay out as dividents? select one: a) $710,000 b) $720,000 c) $ 730,000 d) $700,000
Big Company needs $800,000 in order to buy a new equipment for its business. Big's net income is 51,300,000. Their target capital structures DIE 13. How much Big can pay out as dividends? Select one O a $720,000 OD $710.000 c. $730,000 O d. $700,000
Data Corp needs to buy new equipment to pursue new business lines in order to increase its value. The company has two options: Question 3 (15 points) (Capital Budgeting) Data Corp needs to buy new equipment to pursue new business lines in order to increase its value. The company has two options: Expected Life (yrs) Option Initial Expected Main. Costs Investment Rev (per yr) (per yr) 15,000 6,000 3,000 20,000 5,000 2.100 Salvage Value 6,000 13,000 6 Also assume Option...
Getler Inc.'s projected capital budget is $2,000,000, its target capital structure is 40% debt and 60% equity, and its forecasted net income is $1,000,000. If the company follows a residual dividend policy, how much dividends will it pay or, alternatively, how much new stock must it issue? Dividends Stock Issued Select one: a. $514,425 $162,901 b. $541,500 $171,475 c. $570,000 $180,500 d. $600,000 $190,000 e. $ 0 $200,000
Westboro Industrial earned a $200,000 profit this year. The company needs to buy a new ventilation system at the end of year 7 at a cost of $75,000. The company also wants to invest in a new product line at the end of year 10 at an estimated cost of $100,000. Westboro would like to deposit the profit from this year to pay for these future expenses and then give the remainder of the money to the employees as a...
Below is activity for A Company during the year. Sold Equipment for $65,000. Purchased new Equipment for $140,000 Issued bonds for $100,000. Paid $20,000 in dividends to common stockholders. Received $200,000 when the company had a seasoned equity offering (sold common stock). Paid back a $300,000 Note Payable. Fill out the Investing and Financing Section of A Company's cash flow statement. A Company Cash Flow Statement Cash Flow from Investing Activities ...
1. Below is activity for A Company during the year. Sold Equipment for $65,000. Purchased new Equipment for $140,000 Issued bonds for $100,000. Paid $20,000 in dividends to common stockholders. Received $200,000 when the company had a seasoned equity offering (sold common stock). Paid back a $300,000 Note Payable. Fill out the Investing and Financing Section of A Company's cash flow statement. Cash Flow Statement ASU Cash Flow from Investing Activities Sale of Equipment V [Select] Purchase of new Equipment...
please answer them all and mark the answers . thanks A construction company is considering whether to lease or buy equipment for its new 4-year project. If they buy the equipment, it will have an initial investment cost of $630,000 with annual costs of $42.000. At the end of the 4 years the equipment can be sold for an estimated $378,000. For tax purposes, the company will use MACRS-ADS depreciation on the equipment. If they decide to lease, it will...
MICRO Inc. has net income of $74 million. It has identified positive NPV projects that require $66.6 million in funding. The company's target debt/equity ratio is 0.5. Part 1. What is the company's target capital structure weight for equity (E/V)? Part 2. If the company follows a residual dividend policy, how much will it need to borrow (in $ million)? Part 3. If the company follows a residual dividend policy, how much will it pay out in dividends (in $...