Grandin Inc. is evaluating its dividend policy. It has a capital budget of $625,000, and it wants to maintain a target capital structure of 60% debt and 40% 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%
Answer: D
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Answer the following statements true (T) or false (F)
1. Efficiency and effectiveness are terms used interchangeably and equivalently in management. 2. Automated telephone systems are typically both very effective and very efficient. 3. An effective manager has a multiplier effect on the organization, meaning his or her influence is multiplied beyond the results achievable by just one person. 4. John Hammergren's compensation of $145 million in 2010 as CEO of health care technology firm McKesson is typical for CEOs in North America today.
Which of the following steps in the modeling process described by social learning theory deals with the fact that once information is noted and retained, the person imitates the behavior that they recall?
A. attention B. retention C. reproduction D. motivation
The allowance method overcomes shortcomings of the direct write-off method because it
a. recognizes the loss from uncollectible accounts in the period in which the sale occurs and the firm recognizes revenue. b. reduces the opportunity to manage earnings each period by deciding when particular customers' accounts become uncollectible. c. reflects the amount a firm expects to collect in cash from the accounts receivable on the balance sheet. d. all of the above. e. none of the above.
A company issued 70 shares of $30 par value preferred stock for $4,000 cash. The journal entry to record the issuance is:
A. Debit Preferred Stock $2,100, debit Investment in Preferred Stock $1,900; credit Cash $4,000. B. Debit Cash $2,100; credit Preferred Stock $2,100. C. Debit Cash $4,000; credit Paid-in Capital in Excess of Par Value, Preferred Stock $1,900, credit Preferred Stock $2,100. D. Debit Cash $4,000; credit Preferred Stock $4,000. E. Debit Investment in Preferred Stock $2,100; credit Cash $2,100.