Petersen Company has a capital budget of $1.0 million. The company wants to maintain a target capital structure that is 55% debt and 45% equity. The company forecasts that its net income this year will be $800,000. If the company follows a residual distribution model and pays all distributions as dividends, what will be its payout ratio?

Answers

Answer 1

Answer: 43.75%

Explanation:

Payout ratio = Dividends paid / Earnings

Company has a Capital budget of $1 million which must be financed by 45% equity.

= 1,000,000 * 45%

= $450,000

This will be taken from the Net income which would leave the following for dividends;

= 800,000 - 450,000

= $350,000

Payout ratio = 350,000/800,000

= ‭0.4375‬

= 43.75%


Related Questions

Which management function is also a financial responsibility

A.planning
B.organizing
C.staffing
D.coordinating
E.controlling

Answers

I think it's A) Planning

Answer:

The CORRECT answer is...... Staffing

Explanation:

Look at the picture

if we say local materials​

Answers

What? This is a little confusing

Juan purchases an annuity for 3890 dollars that will make 19 annual payments, the first to come in one year. If the effective rate of interest is 10.8 percent, how much is each annual payment?

Answers

Answer:

489.92  

Explanation:

The formula for the  present value of an ordinary annuity below can be used to determine the size of annual payment wherein  the formula is rearranged to make annual payment the subject of the formula:

PV=Annual payment*(1-(1+r)^-n/r

PV=price paid today=3,890

Annual payment= the unknown

r=effective rate of interest=10.8%

n=number of annual payments expected=19

3,890=Annual payment*(1-(1+10.8%)^-19/10.8%

3,890=Annual payment*(1-(1.108)^-19/0.108

3,890=Annual payment*(1-0.142476931 )/0.108

3,890=Annual payment*0.857523069 /0.108

Annual payment=3,890*0.108/0.857523069

Annual payment= 489.92  

A medical doctor is involved in a $1 million malpractice suit. He can either settle out of court for $250,000 or go to court. If he goes to court and loses, he must pay $825,000 plus $175,000 in court costs. If he wins in court the plaintiffs pay the court costs. Identify the actions of this decision-making problem. Remember, what an action is, something that the decision maker decides to do...

Answers

Answer:

there are two different actions in this decision making problem:

action 1: go to court and defend himselfaction 2: settle out of court and pay money to the plaintiff

Explanation:

When you are solving a problem and need to make to a decision, the actions are the result of what decision you finally decided to make. In this case, the doctor can decide to go to court or not. If he decides to go to court, he will have to defend himself in court. If he decides not to go to court, he will need to settle with the plaintiff without engaging in a court trial.

If the income tax rate applicable to a firm is 35% and the pre-tax cost of debt is 10%, what is the after-tax cost of debt?

Answers

Answer:

the after tax cost of debt is 6.5%

Explanation:

The computation of the after tax cost of debt is shown below:

After tax cost of debt is

= Before tax cost of debt × (1 - tax rate)

= 10%  × (1 - 0.35)

= 10% × 0.65

= 6.5%

Hence, the after tax cost of debt is 6.5%

We simply applied the above formula so that the correct value could come

And, the same is to be considered

Paris operates a talent agency as a sole proprietorship,and this year she incurred the following expenses in operating her talent agency.What is the total deductible amount of these expenditures?
$1,000 dinner with a film producer where no business was discussed
$500 lunch with sister Nicky where no business was discussed
$700 business dinner with a client but Paris forgot to keep any records (oops!)
$900 tickets to the opera with a client following a business meeting
A) $450.
B) $900.
C) $1,100.
D) $1,200.
E) $0

Answers

Answer:

A) $450.

Explanation:

The computation of the total deductible amount of the expenses is as follows:

In the case of the deduction with respect to the meal cost and entertainment. Only the half of the expense would be deducted i.e. for the business meeting

As in the question the opera tickets is $900 so the half of $900 i.e. $450 would be allowed as a deduction

Therefore the correct option is A.

an increase In long run aggregate supply can be expected to _______ the price level and ______ the natural rate of unemployment.​

Answers

Answer:

fall is the answer for both blanks

the median of four numbers is 63.the three of the numbers are 60,62 and 92 what is the missing number ​

Answers

Answer: 64

Explanation:

To find the median of a number, we have to arrange the numbers that are given in either ascending or descending order.

In this case there are 4 numbers, let the fourth number be x, therefore the numbers will be:

60, 62, x and 92.

Since they are four numbers, the median will be the addition of the 2nd and 3rd number and then divided by 2. This will be:

(62 + x) / 2 = 63

62 + x = 126

x = 126 - 62

x = 64

The missing number is 64

A provider of oil for home heating systems is offering $100 off its first delivery to new customers. This is an example of which sales promotion tactic?
a. Contest
b. Free gift with purchase
c. Bonuses
d. Push money

Answers

Answer:

b. Free gift with purchase

Explanation:

The promotion tactic that the provider is trying to use is a Free gift with purchase. This is because by making your first every purchase the company is basically gifting you a certain amount of money through a discount of your purchasing total. Companies tend to do this in order to attract customers through the enticement of free money or products/gifts. They are able to do this because a single purchase will make them more profit than they are wasting on the gift and can lead to recurring customers.

A company purchased an asset for $2,850,000 that will be used in a 3-year project. The asset is in the 3-year MACRS class. The depreciation percentage each year is 33.33%, 44.45%, and 14.81%, respectively. What is the book value of the equipment at the end of the project?
A) $211,185.B) $0.C) $633,270.D) $1,900,095.E) $2,638,815.

Answers

Answer:

A) $211,185

Explanation:

The computation of the book value of the equipment at the end of the project is as follows;

Depreciation in Year 1 is

= Asset Price × 33.33%

= $2,850,000 × 33.33%

= $949,905

Depreciation in Year 2 is

= Asset Price × 44.45%

= $2,850,000 × 44.45%

= $1,266,825

And, Depreciation in Year 3 is

= Asset Price × 14.81%

= $2,850,000 × 14.81%

= $422,085

Now

Total Accumulated Depreciation is

= $949,905 + $1,266,825 + $422,085

= $2,638,815

And, finally  

Book Value of the equipment is

= $2,850,000 - $2,638,815

= $211,185

Therefore the correct option is a.

If a 3D printer increased in cost at exactly the inflation rate, what was the inflation rate if the printer costs exactly twice as much now as it did 10 years ago?

Answers

Answer:

7.18% per year

Explanation:

Calculation for the inflation rate

Using this formula

Inflation rate =1(1 + f)^10 =2

Inflation rate = (1 + f) =2^0.1

Inflation rate=( 1.0718f-1)*100

Inflation rate = 0.0718 *100

Inflation rate=7.18%

Therefore the inflation rate will be 7.18% per year

What is the main advantage of having a skill set with a high market value?
A. Worker organizations have a major need for those skills.
B. Employers are willing to pay more for those skills.
C. There are fewer regulations restricting those skills.
D. Workers are more productive per hour using those skills.

Answers

Answer:

Option B

Explanation:

In simple words, the main benefit of having a high market value is that one will get a high price for the services he or she will provide. Their job will remain stable and they can lead a good life with the compensation they will receive.

Thus, from the above we can conclude that the correct option is B.

Which of the following colors is highly variable and can be either cool or slightly warm, depending on how it is used?

Answers

Explanation:

Dark blue with dark red

Zwick Company bought 25,500 shares of the voting common stock of Handy Corporation in January 2021. In December, Handy announced $202,700 net income for 2021 and declared and paid a cash dividend of $3.00 per share on all 202,500 shares of its outstanding common stock. Zwick Company's dividend revenue from Handy Corporation in December 2021 would be:

Answers

Answer:

$76,500

Explanation:

Zwick Company owns 25,500 shares of Handy Corporation, which represents 25,500 / 202,500 = 12.59% of all common stocks. Since Zwick influence over Handy is not significant, all dividends received will be directly considered dividend revenue.

total dividends received = $3 per share x 25,500 shares = $76,500

Type the correct answer in the box. Spell all words correctly.

Identify the buying or selling process described in the given scenario.

Donna runs a men's apparel manufacturing company. She is reviewing the different suppliers who can supply her company with the required
raw materials.

Donna is going to engage in
buying ______?

Answers

Explanation:

Donna is going to engage in

buying raw materials?

Which method of project selection gives consideration to the time value of money in a capital budgeting decision?
A. Payback method.
B. Average rate of return.
C. Accounting rate of return.
D. Discounted cash flows method.

Answers

Answer:

D. Discounted cash flows method.

Explanation:

The discounted cash flow method is the method in which it discounted all the cash flows to their their present value

Also it provides the consideration with respect to the times value of money while taking decision related to capital budgeting

hence, the correct option is D

And all the other options are incorrect

A capital budgeting decision is a financial commitment and an investment, As by asking a project the business is taking commitments.  

TMV in capital budgeting is a decision through the discounting cash flow. The DFC is a method of valuing the social projects of the company along with the assets. They are estimated and discounted using the cost of capital.

Hence the option D is correct.

Learn more about the project selection gives consideration to the time value.

brainly.com/question/20347481.

Please help me Im stuck on this

Answers

It is a stock. C. The answer is stock

A reduction in the tax rate on pass-through business income to a maximum of 25 percent would ________ the return to entrepreneurship, and this would ________ aggregate supply.

Answers

Answer:

A reduction in the tax rate on pass-through business income to a maximum of 25 percent would ___increase_____ the return to entrepreneurship, and this would __increase______ aggregate supply.

Explanation:

This is the expected outcome that should naturally follow a tax rate reduction.  The returns available to the entrepreneurs would increase, thus, increasing the aggregate supply, since production (GDP) would increase from the increased productivity of the entrepreneur.  Then the entrepreneurs would be able to plough back some of their returns into the business.  As a result,  the overall market productivity will be increased and the goods available to the market would also increase proportionately.

four activities or services that make trade easy ​

Answers

Answer:

The activities are:

1. Transport

In the cutting edge times there is a tremendous distance between places of creation and the places of utilization. This trouble is eliminated by a significant guide to exchange known as Transport.Transport makes place utility.

2. Communication

Communication implies sending or trade of data starting with one individual then onto the next.

Communication can be oral or recorded as a hard copy. It is important to impart data starting with one then onto the next to finish and settle the terms of deals, for example, costs of products, markdown permitted, the office of credit, and so forth

3. Banking

Banking tackles the issue of money. Finance managers get cash and furthermore pays cash in huge sums. It is unsafe to convey a lot of money starting with one spot then onto the next. Here comes Banking as an answer. Banking and monetary organizations take care of the issue of installment and encourage a smooth trade among purchaser and dealer. The finance managers may likewise require present moment and long haul reserves. Banks give such account to money managers.

4. Advertising

Advertising fills the information hole and it unravels the trouble of data. Trade of merchandise and ventures conceivable just if makers can carry the items to the customers. Advertising and exposure are significant media of mass correspondence. Advertising encourages buyers to think about the different brands fabricated by a few makers. The media used to publicize items are Radio, Papers, Magazines, television, the Web, Bulletin, and so on

Explanation:

Trade of products includes a few challenges, which are eliminated by helpers or strengthening underpins known as Aids to Trade.

Here, guides to exchange alludes to every one of those elaborate exercises, which straightforwardly or in a roundabout way encourages smooth trade of merchandise and enterprises.

A survey reveals that, on a small island, 175 people have jobs, 25 people are not working but are looking for jobs, and 90 people are neither working nor looking for work. The unemployment rate on the island is:____.

Answers

Answer:

The answer is = 12.5%

Explanation:

The 175 people that have jobs are in unemployment (employed).

The 25 people that are not working but are looking for jobs are called unemployed.

The 90 people are neither working nor looking for work for work are not counted in the employment.

Therefore, the labor force is employed people + unemployed people.

Labor force is 175 + 25= 200 people.

So, unemployment rate is:

(unemployed people ÷ labor force) x 100

(25÷200) x 100%

=12.5%

mr kleaners acquired new industrial washing mavhine,the list price price of which was 52000.the supplier allowedva tade discount of 4000 off the list price.on delivery the cost of installing the machine in its desire location was 950
what is the cost if machine to be capitalised in the machinery account​

Answers

Answer:

I think its $48,950.

Explanation:

you subtract 4,000 from 52,000 which is 52,000 - 4,000 = 48,000.

then you will add that extra $950 getting you a total of $48,950.

if I'm wrong I'm sorry I'm not that good at math.

Proper Paints Company has a target capital structure of 35% debt and 65% common equity with no preferred stock. Its before tax cost of debt is 8% and its marginal tax rate is 25%. The current stock price is P0 = $22. The last dividend was D0 = $2.25 and it is expected to grow at a 5% constant rate. What is its cost of equity and it's WACC?

Answers

Answer:

cost of equity = 15.74 %

WACC = 12.33 %

Explanation:

The Weighted Average Cost of Equity (WACC) is the return that is required by providers of Long Term source of finance. WACC assumes the Pooling of Funds Principle when it comes to financing projects.

WACC = E/V × Ke + D/V × Kd

Where,

E/V = Market Weight of Equity

      = 0.65

Ke = Cost of Equity

    = D1 / P0 + g

    = ($2.25 × 1.05)/ $22 + 0.05

    = 15.74 %

D/V = Market Weight of Debt

       = 0.35

Kd = Cost of Debt

    =  8%  × (1 - 0.25)

    = 6 %

Therefore,

WACC = 0.65 × 15.74 % + 0.35 × 6 %

           = 12.33 %

The stable and predictable base of deposited funds that are not highly sensitive to movements in market interest rates but tend to remain with the bank are called:

Answers

Answer:

Core deposits.

Explanation:

The stable and predictable base of deposited funds that are not highly sensitive to movements in market interest rates but tend to remain with the bank are called core deposits.

Basically, this type of deposit gives rise to a stable source of money (funds) used for lending by financial institutions such as banks to its customers. Core deposits include all active accounts by customers, certificate of deposits, money market deposits, time deposits, demand deposits, etc.

The main purpose of the core deposits is to ensure there are predictable costs and it can be used to measure a customer's loyalty.

Glenn is an accountant who races stock cars as a hobby. This year Glenn was paid a salary of $83,000 from his employer and won $2,300 in various races. What is the effect of the racing activities on Glenn's taxable income if Glenn has also incurred $4,500 of hobby expenses this year?

Answers

The answer is 40,000

Find the area of the curved surface of a cylinder having a radius 16 cm and length 38 cm.Express the area in meters.​

Answers

Answer:

1216πm^2

Explanation:

radius of cylinder= 16 cm

height of cylinder = 38 cm

Then,

Curved surface area = 2πrh

= 2×22/7×16×38

=3821.72m^2 or 1216πm^2

Rihanna Company is considering purchasing new equipment for $578,500. It is expected that the equipment will produce net annual cash flows of $65,000 over its 10-year useful life. Annual depreciation will be $57,850. Compute the cash payback period. (Round answer to 1 decimal place, e.g. 10.5.)
Cash payback period _________ years

Answers

Answer:

The cash payback period is 8.9 years.

Explanation:

This can be calculated using the following formula:

Cash payback period = Equipment cost / Annual net cash inflows ...............(1)

Where;

Equipment cost = $578,500

Net annual cash flows = $65,000

Substituting the values into equation (1), we have:

Cash payback period = $578,500 / $65,000

Cash payback period = 8.9 years

Note that the net annual cash flows is obtained after the annual cash ouflows is deducted from the annual cash inflows. Since annual depreciation is already part of the annual cash outflows, there is no need to consider it again in our calculation.

Getting certain advanced certifications can require ______.
a.
Passing knowledge tests
b.
Years of experience
c.
Extensive training
d.
All of the above

Answers

Answer:

d. All of the above

Explanation:

Advanced certificate programs as the name entails are only for professionals who are established in their careers line. Ordinary or new professionals cannot get this certificate as it requires experiences and job test to acquire the certificate. Passing knowledge tests, years of experience and extensive training are all requisite to possess to be able to acquire advance certificate.

Answer:

d all of the above. HOPE THIS HELPS!!

Explanation:

Zoom, Inc. makes a sale for $600. The company is required to collect sales taxes amounting to 7%. The journal entry to record the sale will include a: ___________.
a. credit to Cash for $642.
b. credit to Sales Revenue for $600.
c. debit to Cash for $600.
d. credit to Sales Revenue for $642.
e. debit to Sales Tax Payable for $42.

Answers

Answer:

b. credit to Sales Revenue for $600.

Explanation:

The sales tax is 7% of the sales price which is $600

Sales tax=7%*$600=$42

The journal entries for this transaction would have a debit of $642(sales price plus sales tax i.e $600+$42=$642) in the cash account and not credit as shown by option a.

Also, sales revenue would be credited with sales price of $600 while sales tax payable is credited with the amount of sales tax which is $42( not a debit as shown by option e)

EASY ANSWER
You should plan to arrive _____ minutes early for an interview.

fifteen
ten
twenty
five

Answers

Answer:

10 or 15 bc of my mom

Explanation:

Answer:

Fifteen

Explanation:

When the grocery store orders a large shipment of chocolate candy just before Valentine's Day, this type of inventory is typically called:_______
A. Smoothing Inventory
B. Hedge Inventory
C. Cycle Stock
D. Transportation Inventory
E. Anticipation Inventory

Answers

Answer:

E. Anticipation Inventory

Explanation:

In the case when the grocery store wants to order for a big chocolate shipment prior to the valentine day so there the inventory type would be anticipation inventory as it represents the demand anticipation for the forthcoming event i.e. valentine day

So the same is to be considered

Hence, the correct option is E

And, the other options are incorrect

Other Questions
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