Purchase Solution

Payout ratio-residual dividend policy

Not what you're looking for?

Ask Custom Question

81. A company follows a strict residual dividend policy. The company has a capital budget of 3 mil. It has a target capital structure which consists of 30% debt and 70% equity. The company forecasts that its net income will be 3.5 mil. What will be the company's payout ratio this year?

25%
30
35
40
45

Purchase this Solution

Solution Summary

Calculates dividend payout ratio.

Solution Preview

A co. follows a strict residual dividend policy.  The co. has a capital budget of 3 mil.  It has a target capital structure which consists of 30% debt and 70% equity.  The company ...

Purchase this Solution


Free BrainMass Quizzes
Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Introduction to Finance

This quiz test introductory finance topics.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.