Galaxy Optics Ltd. has the following financial data (in thousands of dollars). If the company follows the residual dividend model, what will its dividend payout ratio be? Capital Budget $20,000 Debt 40% Net Income $14,000 a. 20.00% b. 28.57% c. 35.00% d. 14.29% e. 50.00%

Galaxy Optics Ltd. has the following financial data (in thousands of dollars). If the company follows the residual dividend model, what will its dividend payout ratio be? Capital Budget $20,000 Debt 40% Net Income $14,000 a. 20.00% b. 28.57% c. 35.00% d. 14.29% e. 50.00%

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter15: Distributions To Shareholders: Dividends And Repurchases

Section: Chapter Questions

Problem 3MC: Assume that IWT has completed its IPO and has a $112.5 million capital budget planned for the coming...

See similar textbooks

Related questions

Q: Financial Accounting

A: Step 1: Definition of Cash Flow to ShareholdersCash Flow to Shareholders refers to the total amount…

Q: what is the company debt to equity ratio at the end of year 2 ?

A: One of the important financial ratios measuring a company's total liabilities versus the equity of…

Q: Please explain the solution to this financial accounting problem with accurate principles.

A: Step 1: Definition of Market Price per ShareThe market price per share refers to the price at which…

Q: Can you solve this general accounting problem with appropriate steps and explanations?

A: Step 1: Definition of Net Sales RevenueNet Sales Revenue is the actual revenue a company earns from…

Q: ??

A: Step 1: Definition of Asset Turnover RatioThe Asset Turnover Ratio measures how efficiently a…

Q: During FY 2005 Plastic Manufacturing had total manufacturing costs are $418,000. Their cost of goods…

A: Explanation of Total Manufacturing Costs:Total manufacturing costs include all expenses directly…

Q: I need guidance with this financial accounting problem using the right financial principles.

A: Step 1: Define Adjusting Entry for SuppliesAn adjusting entry for supplies is made at the end of the…

Q: Accurate Answer

A: a. Other Comprehensive Income (OCI):Other Comprehensive Income includes items that are not part of…

Q: Expert of general accounting questions??

A: Step 1: Definition of Activity RateThe Activity Rate in Activity-Based Costing (ABC) refers to the…

Q: Get correct answer please general accounting

A: Step 1: Definition of Predetermined Overhead RateThe predetermined overhead rate is a rate…

Q: Can you show me the correct approach to solve this financial accounting problem using suitable…

A: Provided Data:Current Assets = $438,000Current Liabilities = $193,000Step 1: Key…

Q: Find the proceeds

A: Understanding Bank DiscountBank discount is calculated on the face value of the note, and it's…

Q: Provide correct answer

A: Step 1: Definition of Budgeted Cash CollectionsBudgeted cash collections refer to the projected…

Q: The contribution margin equals? A. Sales minus total costs B. Sales minus fixed costs C. Sales minus…

A: C. Sales minus variable costsContribution Margin = Sales - Variable CostsThis measures how much…

Q: I am trying to find the accurate solution to this financial accounting problem with the correct…

A: Step 1: Definition of Number of Days' Sales in Accounts ReceivableThe Number of Days' Sales in…

Q: financial accounting

A: Step 1: Definition of Debt-to-Equity RatioThe Debt-to-Equity (D/E) Ratio is a financial metric used…

Q: In May, one of the processing departments at Sundale Manufacturing had beginning work in process…

A: Provided Data:Beginning Work in Process (WIP) Inventory = $45,000Ending Work in Process (WIP)…

Q: I need help with this financial accounting problem using proper accounting guidelines.

A: Step 1: Define Retained EarningsRetained earnings represent the portion of net income not…

Q: Can you help me solve this general accounting problem with the correct methodology?

A: Step 1: Define Material Price VarianceMaterial price variance measures the difference between the…

Q: Need help

A: Provided Data:Budgeted overhead = $360,000Budgeted labor hours = 60,000 hoursActual labor hours…

Q: I need assistance with this general accounting question using appropriate principles.

A: Step 1: Define Owners' EquityOwners' Equity (also known as Shareholders' Equity or Stockholders'…

Q: Need help in this problem can u do

A: Hello student! Net Income shows the performance of the business in terms of making profit. This is…

Q: Please provide the correct answer to this financial accounting problem using accurate calculations.

A: Provided Data:Product X production = 1,500 unitsProduct Y production = 1,000 unitsProduct X direct…

Q: Can you solve this financial accounting question with accurate accounting calculations?

A: Step 1: Define Conversion PriceThe conversion price is the effective price per share at which a…

Q: Can you explain the process for solving this financial accounting question accurately?

A: Step 1: Define Price/Earnings RatioThe Price/Earnings (P/E) Ratio is a financial metric used to…

Q: Vanguard Windows manufactures skylights for residential homes. Historically, its demand has ranged…

Q: Help with accounting question

A: Step 1: Definition of Price-Earnings (P/E) RatioThe Price-Earnings (P/E) Ratio is a financial metric…

Q: compute the variable and fixed elements using the high low mwthod ?

A: Step 1: Definition of Mixed CostsMixed costs, also known as semi-variable costs, are costs that have…

Q: Expert need your help

Q: Please provide the answer to this financial accounting question using the right approach.

A: Step 1: Definition of Budgeted PurchasesBudgeted purchases represent the estimated amount of…

Q: How much raw material was used during September? Accounting question

A: Step 1: Definition of Raw Materials UsedRaw materials used refers to the total cost of direct…

Q: I am trying to find the accurate solution to this financial accounting problem with the correct…

A: Step 1: Define Return on Investment (ROI)Return on Investment (ROI) is a performance measure used to…

Q: Suppose Columbia Sportswear Company had accounts receivable of $312,680,750 at January 1, 2018, and…

A: Explanation of Accounts Receivable: Accounts receivable represents money owed to a company by its…

Q: How much wage expense should be accured on Wednesday?

A: Explanation of Accrued Expenses:Accrued expenses are costs that a company has incurred but has not…

Q: I am trying to find the accurate solution to this general accounting problem with appropriate…

A: Step 1: Definition of Variable Costing (Ending Inventory)Under variable costing, only variable…

Q: 5 POINT

A: Provided Data:Sales = $875,600 (not used directly in this calculation)Cost of Goods Sold (COGS) =…

Q: Calculate the total manufacturing cost per unit?

A: Step 1: Definition of Total Manufacturing Cost per UnitTotal manufacturing cost per unit is the…

Q: I am looking for the correct answer to this financial accounting problem using valid accounting…

A: Explanation for a: In the given case, we are required to calculate the amount of current liabilities…

Q: Please explain the solution to this general accounting problem with accurate explanations.

A: Step 1: Define Double-Declining Balance MethodThe double-declining balance (DDB) method is an…

Q: what is the gross profit margin???

A: Step 1: Definition of Gross Profit MarginGross Profit Margin is a financial metric used to assess…

Q: What is millstone's price-sales ratio?

A: To calculate Millstone's price-sales ratio, you will need the following information:Market…

Q: Step by step solution

A: Concept of Inventory:Inventory refers to the goods and materials a business holds for the purpose of…

Q: Solve this MCQ

A: Explanation of Break-even Point:The break-even point is the level of sales or production at which…

Q: I am searching for the accurate solution to this financial accounting problem with the right…

A: Step 1: Definition of Interest Expense RecognitionInterest expense is recognized as the cost…

Q: Banksy Corp uses predetermined overhead rates based on labor hours. The monthly budgeted overhead is…

A: To determine overhead at the end of the month: Overhead at the end of the month is $300,000…

Q: that is the depreciation expense for 2024 ??

A: Step 1: Definition of Depreciation ExpenseDepreciation Expense refers to the gradual allocation of…

Q: For the year ended December 31, 2020, Malek Inc. earned an ROI of 12.5%. Sales for the year were $25…

A: Step 1: Definitions Concept of Return on Investment (ROI):Return on Investment (ROI) is a measure of…

Q: Provide Answer

A: Liquid asset:Liquid assets are assets that can be quickly and easily converted into cash without…

Q: Can you solve this general accounting question with the appropriate accounting analysis techniques?

A: Step 1: Definition of Total Cash from Operating Activities Total cash from operating activities…

Q: Tutor please solve this MCQ

A: Explanation of Accrual Basis of Accounting:The accrual basis of accounting is a method where…

Question

I need help with this General accounting question using the proper accounting approach.

Galaxy Optics Ltd. has the following financial data (in
thousands of dollars). If the company follows the
residual dividend model, what will its dividend payout
ratio be?
Capital Budget $20,000
Debt 40%
Net Income $14,000
a. 20.00%
b. 28.57%
c. 35.00%
d. 14.29%
e. 50.00%

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

The Cost of Equity and Flotation Costs Messman Manufacturing will issue common stock to the public for $30. The expected dividend and the growth in dividends are $3.00 per share and 5%, respectively. If the flotation cost is 10% of the issue’s gross proceeds, what is the cost of external equity, re?
What will its dividend payout ratio on these financial accounting question?
Please answer this question general accounting
ABC Inc. has the following data. If it follows the residual dividend model, what is its forecasted dividend payout ratio? Capital budget % Debt Net income (NI) Select one: a. 49.20% b. 37.20% c. 31.60% d. 39.60% e. 40.00% $7,000 40% $7,000
Financial Accounting
What is its forecasted dividend payout ratio of this financial accounting question?
To help them estimate the company's cost of capital, Smithco has hired you as a consultant. You have been provided with the following data: D₁ = $1.45; Po = $22.50; and gL = 6.50% (constant). Based on the dividend growth approach, what is the cost of common from reinvested earnings? O a. 13.59% O b. 12.94% c 11.10% d. 12.30% e. 11.68% O
Please give me answer with accounting question
Using the data from question 2, please answer question 3.
If a company has a current stock price of $45, an EPS of $3/share; EPS growth rate of 10% and the investors rate of return is 15%, calculate the cash cow price.0 a. $180 b. $190 c. $22 Od. $210 e. $20IGENEXT
Please provide solutions. Thank you! The following information relates to Konbu Corporation for last year: Price earnings ratio = P15 Dividend payout ratio = 30% Earnings per share = P5 What is Konbu's dividend yield ratio for last year?a.1.5%b.2.0%c.4.5%d.10%
Please give me answer accounting