1. | Question : | (TCO C) Blease Inc. has a capital budget of $625‚000‚ and it wants to maintain a target capital structure of 60 percent debt and 40 percent equity. The company forecasts a net income of $475‚000. If it follows the residual dividend policy‚ what is its forecasted dividend payout ratio? (a) 40.61% (b) 42.75% (c) 45.00% (d) 47.37% (e) 49.74% | | | Student Answer: | | (d) 47.37 Equity required (Residual income) = $625‚000*40% = $250‚000 Dividend paid = $475‚000 - $250
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1. | Question : | (TCO D) Which of the following factors would increase the likelihood that a company would call its outstanding bonds at this time? (a) The yield to maturity on the company’s outstanding bonds increases due to a weakening of the firm’s financial situation. (b) A provision in the bond indenture lowers the call price on specific dates‚ and yesterday was one of those dates. (c) The flotation costs associated with issuing new bonds rise. (d) The firm’s CFO believes that interest
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FIN-516 WEEK 1 – HOMEWORK ASSIGNMENT Problem Based on Chapter 14‚ Residual Dividends Middlesex Plastics Manufacturing had 2011 Net Income of $15.0 Million. Its 2012 Net Income is forecast to increase by 8%. The company’s capital structure has been 35% Debt and 65% Equity since 2010‚ and the company plans to maintain this capital structure in 2012. The company paid $3.0 Million cash dividends in 2011. The company is planning to invest in a major capital project in 2012. The capital budget
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Title: Island of the Blue Dolphins Author: Scott O’Dell Plot: Once‚ Indians lived on an island in the Pacific that looked like a big fish sunning itself in the sea. When they left‚ one girl was left behind along with her brother. This girl’s name was Karana. Karana and her brother lived on the island for a couple of days when one morning Karana found her brother dead. Wild dogs had killed him. Karana was left alone on the island with nothing but an abandoned village and hopes of a ship returning
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The two different short stories titled respectively "Sonny’s Blues" and "This Is What it Means to Say Pheonix‚ Arizona" maintain several similarities throughout their particular lengths. Both observant tales of changing times and cultures‚ the novellas incorporate themes of brotherhood‚ loss‚ and the rekindling of relationships. Due to the resemblance between the themes and atmospheres of the two stories‚ an analyzation is necessary to draw assessments associating these particular tales. One of
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Good job with the opening. It captures the audience’s attention‚ I like how you started with a question and listed the variety of feelings that you had felt. I think you did a good job at clearly and correctly introducing the short story “Sonny’s Blues” and giving a short summary. Your point in telling the story is clear; you want to let the readers know how important family is and how you should always be there for them. You used a lot of good details by giving the reader background knowledge on
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Exploring the Dark Side: Contrasting Themes in "Blue Velvet" The subconscious psyche is one of the most fascinating and almost completely inexplicable aspects of human behavior. Even more intriguing than merely the subconscious is the notion of a darker‚ more repressed side that many individuals refuse to acknowledge exists within them. In David Lynch’s film "Blue Velvet‚" the director attempts to explore the psyche of a young man named Jeffrey Beaumont‚ most notably the clash between his darker
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Carmen Yost Feburary 9th 2015 Fin 410 Chapter 4 Problems Dr. Terry Dowdy Resource: Ch. 4 of Foundations of Financial Management Complete Problems 16‚ 19‚ & 25 in Ch. 4 of Foundations of Financial Management 16. J. Lo’s Clothiers has forecast credit sales for the fourth quarter of the year as: September (actual) $70‚000 Fourth Quarter October $60‚000 November 55‚000 December 80‚000 Schedule of cash receipts (LO2) Experience has shown that 30 percent of sales are collected
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In this paperwork of FIN 515 Week 4 Midterm you will find the next information: 1. (TCO A) Which of the following statements is CORRECT? 2. (TCO G) Which of the following statements is CORRECT? 3. (TCO G) LeCompte Corp. has $312‚900 of assets‚ and it uses only common equity capital (zero debt). Its sales for the last year were $620‚000‚ and its net income after taxes was $24‚655. Stockholders recently voted in a new management team that has promised to lower costs and get the return
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Anderson. Gary was an outstanding production engineer and was promoted to senior scientist responsible for all R&D acitivities performed in the Mechanical Engineering department. In January 1978‚ Parks Corporation decided to bid for Phase I on the Blue Spider Project‚ with Lord Industries as the prime contractor for the Army’s Spartan Program. The project was to improve structural capabilities and the age life of the short range tactical missile‚ which was exhibiting fatigue failure after 6 years
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