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Marcus Corporation has a capital budget of $5 million and wants to maintain

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Marcus Corporation has a capital budget of $5 million and wants to maintain a capital structure;of 40% debt and 60% equity. The company expects net income of 4 million. What is the;expected dividend payout ratio if the company follows a residual dividend policy?;50%;40%;20%;25%;none of the above;A companys dividend policy decision should not be influenced by which of the following?;Constraints imposed by the firm's bond indenture.;The fact that much of the firm's equipment has been leased rather than purchased;The firm's ability to accelerate investment projects.;The firm's ability to delay investment projects;none of the above;A company's stock sells for $2.00 per share. The company wants to use a reverse split to get;the price up to $22 per share. How many of the old shares must be given up for one new share;to get to the $22 price? Assume this transaction has no effect on market value.;22.0;20.5;10.0;12.0;none of the above;Which of the following would be most likely to result in an increase in a firm's dividend payout;ratio?;Its access to the capital markets decreases.;It has more high-return investment opportunities;Its accounts receivable increase due to a change in its credit policy.;It has fewer high-return investment opportunities.;none of the above;A company is planning an IPO of 10 million shares. Each share is expected to sell at $10 per;share. The underwriters will charge an 8% spread and incur expenses of $500,000. How;much will the company receive if all shares sell at the expected price?;$91,450,000;$92,000,000;$100,000,000;$99,500,000;none of the above;A company sold 10 million shares in an IPO at a price of $10 per share. The underwriters;charged an 8% fee and incurred expenses of $500,000. Price per share at the end of the first;day was $12.50. How much money was left on the table?;$15.8 million;$33 million;$17 million;$25 million;none of the above;Which of the following is a good reason for a company to go public?;The company has excess capital;The company has a low debt ratio;The company's founders want to diversify;Costs of reporting will be low;none of the above;A large company with publicly traded stock plans to issue additional shares. This is called;a shelf registration;A private placement;a seasoned equity offering;an employee stock option plan;none of the above;View Full Attachment;Additional Requirements;Min Pages: 1;Max Pages: 2;Level of Detail: Only answer needed;Other Requirements: Please answer the multiple choice answers. Work does not need to be shown.

 

Paper#26003 | Written in 18-Jul-2015

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