# Total money to be raised

I need help with assignment. Please see the attachment. It is a question about determining the amount of money that needs to be raised.

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Thank you for asking BrainMass. The answers are attached in the document, as well as posted here:

Marcus Corporation has a capital budget of $5 million and wants to maintain a capital structure of 40% debt and 60% equity. The company expects net income of 4 million. What is the expected dividend payout ratio if the company follows a residual dividend policy?

50%

40%

20%

25%

none of the above

Expected dividend payout ratio will be =Dividend paid/Net income

Dividend= Net Income - Retained earnings

Retained earnings= Equity %*Capital Budget

=60%*5000000

=$3000000

Dividend= 4000000-3000000

=$1000000

Dividend Payout ratio= 1000000/4000000

=25%

Hence C.

MLC, Inc. stock sold for $75 per share prior to a 4 for 1 stock split. What is the expected post-split stock price, everything else held constant?

$50.00

$37.50

$18.75

$71.00

none of the above

It will be 75/4

=18.75= Answer

Hence C.

A company's dividend policy decision should not be influenced by which of the following?

Constraints imposed by the firm's bond indenture.

The fact that much of ...

#### Solution Summary

Solution helps in estimation of total money to be raised

Variation in regression line and coefficient of determination

Problems 1, 3

1. Use the graph below to describe the total variation about a regression line in words and in symbols.

This is the answer from the book, but how? S(yi - y)2; the sum of the squares of the differences between the y-values of each ordered pair and the mean of the y-values of the ordered pairs.

3 Use the graph to below describe the unexplained variation about a regression line in words and in symbols.

This is the answer from the book, but how? S(yi - yi)2; the sum of the squares of the differences between the observed y-values and the predicted y-values.

Problems 11, 13, 15

For #11, 13, 15 Find the (a) coefficient of determination and interpret the results, and (b) standard error of estimate se and interpret the results.

11 Retail Space and Sales ? The following table represents the total square footage (in billions) of retailing space at shopping centers and their sales (in billions of U.S. dollars) for 11 years. The equation of the regression line is

Total square footage, x 1.6 2.3 3.0 3.4 3.9 4.6

Sales, y 123.2 211.5 385.5 475.1 641.1 716.9

Total square footage, x 4.7 4.8 4.9 5.0 5.1

Sales, y 768.2 806.6 851.3 893.8 933.9

13. Earnings of Men and Women ? The following table represents median weekly earnings (in U.S. dollars) of full-time male and female workers for five years. The equation of the regression line is

Median weekly earnings of male workers,x 312 419 485 538 557

Median weekly earnings of female workers,y 201 290 348 406 418

15. Campaign Money ? The money raised and spent (both in millions of U.S. dollars) by all congressional campaigns for eight recent years are shown in the table. The data can be modeled by the regression equation = 1.020x - 25.854.

Money raised,x 354.7 397.2 472.0 477.6

Money spent,y 342.4 374.1 450.9 459.0

Money raised,x 471.7 659.3 740.5 790.5

Money spent,y 446.3 680.2 725.2 765.3

Problem 17

Constructing and Interpreting Prediction Intervals: In the next question construct the indicated prediction interval and interpret the results.

The number of initial public offerings of stock issued in a recent 12-year period and the total proceeds of these offerings (in millions of U.S. dollars) are listed below.

No. of issues,x 332 694 518 222 209 172

Proceeds,y 6284.8 17,738.8 16,745.7 6111.7 6082.0 4519.0

No. of issues,x 366 512 667 571 575 865

Proceeds,y 16,283.2 23,379.8 34,461.1 22,771.9 29,270.8 48,789.8

17. Proceeds? Construct a 95% prediction interval for the proceeds from initial public offerings when the number of issues is 712.

Problem 29

Use the information given below to answer the question:

29 Coefficient of Determination ? Find the coefficient of determination. What can you conclude?

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