Net profit of Green Forest Ltd in the current year is $2,355,000. The company is planning to launch a project that will requires an investment of $ 945,000 next year. The common stock of the company goes ex-dividend tomorrow. The stock closed at a price of $35.65 per share today. The company is paying a cash dividend of $4.50 a share and an extra cash dividend of $1.5 a share. Required: Calculate the net profit available for dividend payment and dividend payout ratio of the company, assuming the capital structure of the company is 60% equity funding, 40% debt funding, using the Residual Dividend Payout Policy.  Assuming the tax rate on dividends is 25%. Calculate the ex-dividend price tomorrow morning

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Q: Net profit of Green Forest Ltd in the current year is $2,355,000. The company is planning to launch…

A: Current value of firm = $2,355,000 Investment required = $945,000 Stock price = $35.65 Cash dividend…

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Q: What is the price per share of the company's stock?

A:

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Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.