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. 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?
A. $584,250
B. $615,000
C. $645,750
D. $678,038
E. $711,939
Answer: B
You might also like to view...
Lambert invests $10,000 for a 1/3 interest in a partnership in which the other partners have capital totaling $26,000 before admitting Lambert. After distribution of the bonus, what is Lambert's capital?
A) $12,000 B) $10,000 C) $8,667 D) $5,333
Walmart still retained the ad agency Ms. Roehm had selected for Walmart before her termination
Indicate whether the statement is true or false
Excerpts from Sydner Corporation's most recent balance sheet appear below: Year 2Year 1Current assets: Cash$140 $160 Accounts receivable, net 210 230 Inventory 240 200 Prepaid expenses 10 10 Total current assets$600 $600 Total current liabilities$360 $330 Sales on account in Year 2 amounted to $1,390 and the cost of goods sold was $900.The current ratio at the end of Year 2 is closest to:
A. 0.32 B. 0.41 C. 1.67 D. 0.80
The Trojan horse placed on the first compromised GHOSTNET client could ________
A) conduct audio and video surveillance B) delete files C) both A and B D) neither A nor B