United Builders wants to maintain a target capital structure with 30% debt and 70% equity. Its forecasted net income is $550,000, and because of market conditions, the company will not issue any new stock during the coming year. If the firm follows the residual dividend policy, what is the maximum capital budget that is consistent with maintaining the target capital structure?
A. $673,652
B. $709,107
C. $746,429
D. $785,714
E. $825,000
Answer: D
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When a company uses the allowance method of accounting for uncollectible receivables, which entry would not befound in the general journal?
a. Bad Debt Expense Allowance for Doubtful Accounts 500 500 b. Bad Debt Expense Accounts Receivable, Bob Smith 500 500 c. Cash 300 Allowance for Doubtful AccountsAccounts Receivable, Bob Smith 200 500 d. Cash Accounts Receivable, Bob Smith 500 500
When a marketer understands that a product satisfies a buyer's rational criteria while also evoking an emotional response, the marketer should:
A) only target consumers in high-income countries. B) utilize a multi-tiered targeting strategy rather than a concentrated strategy. C) commission psychographic segmentation studies to augment demographic data. D) create advertising that reflects a bipolar, high-tech and high-touch approach. E) follow normal targeting strategy.
Which of the following entities in the marketing channel is a merchant?
A) wholesalers B) brokers C) sales agents D) warehouses E) advertising agencies
Leader ____________ occurs when someone naturally becomes the leader of a leaderless group.
a. Authority b. Effectiveness c. Emergence d. Popularity