The expected total capital budget for the year is? 2. Assuming the company has 200,000 ordinary shares outstanding, how much is the dividends per share?
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International Cargo Inc. which is subjected to 20% tax rate employs residual dividend policy to its ordinary shareholders. The expected before tax net income for the year is P2,500,000. The firm will retain a 75% plowback ratio. International Cargo Inc. is funded only by common equity and debt on which the target debt ratio is 60%.
1. The expected total capital budget for the year is?
2. Assuming the company has 200,000 ordinary shares outstanding, how much is the dividends per share?
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- International Cargo Inc. which is subjected to 20% tax rate employs residual dividend policy to its ordinary shareholders. The expected before tax net income for the year is P2,500,000. The firm will retain a 75% plowback ratio. International Cargo Inc. is funded only by common equity and debt on which the target debt ratio is 60%. How much debt must International Cargo Inc. issue to satisfy the capital budget for the year? Assuming the company has 200,000 ordinary shares outstanding, how much is the dividends per share?International Cargo Inc. which is subjected to 20% tax rate employs residual dividend policy to its ordinary shareholders. The expected before tax net income for the year is P2,500,000. The firm will retain a 75% plowback ratio. International Cargo Inc. is funded only by common equity and debt on which the target debt ratio is 60%.Determine the after-tax net income and the expected total capital budget for the year?National Co.’ CFO has provided the following information:· The company’s capital budget is expected to be P5,000,000.· The company’s target capital structure is 75 percent debt and 25 percent equity.· The company’s net income is P4,600,000.If the company follows a residual dividend policy, what portion of its net income should it pay out as dividends this year? Format: 11.11%
- PWC Inc. has a policy of distributing 30% of its current year income after interest and taxes. Which of the following statement is true in relation to this limited information? a. PWC Inc. has a 70% retention ratio b. PWC Inc. has a dividend yield of 70% c. 70% of the capital of PWC Inc. is funded by debt d. PWC Inc. has already satisfied its capital budget for the year. Which of the following is not a practical thing to consider in determining the company’s dividend policy? a. Legal restrictions b. Cash position c. Ownership control d. Prevailing interest ratesInternational Cargo Inc. which is subjected to 20% tax rate employs residual dividend policy to its ordinary shareholders. The expected before tax net income for the year is P2,500,000. The firm will retain a 75% plowback ratio. International Cargo Inc. is funded only by common equity and debt on which the target debt ratio is 60%.Assuming the company has 200,000 ordinary shares outstanding, how much is the dividends per share?International Cargo Inc. which is subjected to 20% tax rate employs residual dividend policy to its ordinary shareholders. The expected before tax net income for the year is P2,500,000. The firm will retain a 75% plowback ratio. International Cargo Inc. is funded only by common equity and debt on which the target debt ratio is 60%. Assuming that the shares of International Cargo Inc. has a market price of P35, what is the dividend yield?
- Harvey's Industrial Plumbing Supply's target capital structure consists of 40% debt and 60% equity. Its capital budget this year is forecast to be $650,000. It also wants to pay a dividend of $225,000. a. If the company follows the residual dividend policy, how much net income must it earn to meet its capital requirements, pay the dividend, and keep the capital structure in balance? b. Is the residual approach to setting the dividend a good approach? Why or why not?Plato, Inc., expects to have net income of $5,000,000 during the next year. Plato’s target capital structure is 35 percent debt and 65 percent equity. The company’s director of capital budgeting has determined that the optimal capital budget for the coming year is $6,000,000. If Plato follows a residual distribution policy (with all distributions in the form of dividends) to determine the coming year’s dividend, then what is Plato’s payout ratio? 38% 42% 58% 33% 22%LoveDebt Ltd. has a target capital structure which consists of 60% of debt and 40% of equity. The company anticipates that its capital budget for the upcoming year will be $3,500,000. If LoveDebt Ltd. reports net income of $2,500,000 and it follows a residual dividend payout policy, what will be its dividend payout ratio?
- A company finances its operations with 60 percent debt and the rest using equity. The annual yield on the company's debt is 4.1% and the required rate of return on the stock is 12.4%. What is company's WACC? Assume the tax rate is 30%Altamonte Telecommunications has a target capital structure that consists of 60% debt and 40% equity. The company anticipates that its capital budget for the upcoming year will be $2,000,000. If Altamonte reports net income of $1,300,000 and it follows a residual dividend payout policy, what will be its dividend payout ratio? Round your answer to two decimal places.As the chief financial officer of Adirondack Designs, you have the following information: Next year’s expected net income after tax but before new financing $ 51 million Sinking-fund payments due next year on the existing debt $ 26 million Interest due next year on the existing debt $ 21 million Common stock price, per share $ 33.5 Common shares outstanding 31 million Company tax rate 35% Calculate Adirondack’s times-interest-earned ratio for next year assuming the firm raises $61 million of new debt at an interest rate of 2 percent. Calculate Adirondack’s times-burden-covered ratio for next year assuming annual sinking-fund payments on the new debt will equal $3.0 million. Calculate next year’s earnings per share assuming Adirondack raises the $61 million of new debt. Calculate next year’s times-interest-earned ratio, times-burden-covered ratio, and earnings per share if Adirondack sells 2.6 million new shares at $22 a share instead of raising new debt.