Kelly Varnsen, a junior financial analyst at Vandalay Industries, has been asked to calculate this year's dividend. Kelly has gathered the following data:
CAPEX (spending on fixed assets) = $17,000
Increase in net working capital = $3,000
Target capital structure is 20% debt and 80% equity
Net income is = $17,000.
If Vandalay follows a residual dividend policy, then the dividend payout rate this year is:
A) 20%
B) 25%
C) 30%
D) 35%
E) 40%
A
You might also like to view...
Noncash assets invested into a partnership are recorded at
A) their fair market value. B) their carrying value. C) zero. D) their original cost.
________ e-commerce is the online exchange between companies and individual consumers
A) B2B B) B2C C) P2P D) C2C E) C2B
Which of the following statements about packaging is true?
A. Packaging decisions should be based on which package will result in the lowest possible cost to the consumer. B. Packaging is important to manufacturers but not to retailers. C. Packaging almost always increases costs. D. Packaging objectives should focus primarily on promoting the product at the point of purchase. E. None of these statements is true.
Refer to the Shipping Costs for The Allied Motors Company. Solve the transportation problem using Excel Solver. (Remember that in balanced transportation problems all constraints--except the nonnegativity constraints of the decision variables--should be set as an equal to (=) sign in the Excel Solver dialogue.) At the optimum solution, the cost of shipping from Hampton to Newark is approximately ______.
A. $604
B. $795
C. $112
D. $833