Whitman Antique Cars Inc. has the following data, and it follows the residual dividend model. Some Whitman family members would like more dividends, and they also think that the firm's capital budget includes too many projects whose NPVs are close to zero. If Whitman reduced its capital budget to the indicated level, by how much could dividends beincreased, holding other things constant? ? Original capital budget$3,000,000 New capital budget$1,900,000 Net income$3,500,000 % Debt30% ?
A. $521,700
B. $404,200
C. $493,500
D. $484,100
E. $470,000
Answer: E
You might also like to view...
Entering the transactions in a journal is called journalizing
Indicate whether the statement is true or false
Use this information to answer the following question. Pinnacle Corporation has 90,000 shares of $10 par value common stock outstanding. The following transactions occurred during the year: Mar. 17 Declared a 10 percent stock dividend to stockholders of record on March 20. Market value of the stock was $22 on March 17. 30 Distributed the stock dividend. The entry to record the transaction of
March 17 is: A) Stock Dividends 198,000 Common Stock Distributable 90,000Additional Paid-in Capital 108,000 B) Common Stock Distributable 90,000 Common Stock 90,000 C) Common Stock Distributable 198,000 Common Stock 90,000Retained Earnings 108,000 D) Stock Dividends 198,000 Cash 198,000
The indirect approach is an appropriate strategy for ______.
A. good news B. neutral news C. bad news D. both good news and neutral news
To get a case before a federal court, there must be a federal question of law
Indicate whether the statement is true or false