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From the end of Chapter 13, complete Study Problem...

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From the end of Chapter 13, complete Study Problems 13-1 and 13-2 and post the answers to the discussion board. Remember to complete all parts of the problem and report the results of your analysis. Do not forget to show the necessary steps and explain how you attained that outcome. Please find the website that goes alongside the textbook listed below: http://wps.prenhall.com/bp_keown_fof_7/144/37020/9477271.cw/index.html 13-1. What is meant by the term dividend payout ratio? 13-2. Explain the trade-off between retaining internally generated funds and paying cash dividends. PLEASE SHOW ALL STEPS NEED TO REACH OUTCOME,From the end of Chapter 13, complete Study Problems 13-1 and 13-2 and post the answers to the discussion board. Remember to complete all parts of the problem and report the results of your analysis. Do not forget to show the necessary steps and explain how you attained that outcome. 13-1. What is meant by the term dividend payout ratio? PROBLEM 13-1 DIVIDEND POLICIES DATA Profits after Year Taxes 1 18,000,000 2 21,000,000 3 19,000,000 4 23,000,000 5 25,000,000 106,000,000 Outstanding 7,500,000 Div payout ratio 40% Stable div/Earn 40% over next 5 years Regular div 0.60 Year-end extra when profits exceed 20,000,000 % of profits 50% A) Target Dividend = B) Small, regular div plus year-end extra: C) Constant Payout Ratio: Year 1 Year 2 Year 3 Year 4 Year 5 13-2. Explain the trade-off between retaining internally generated funds and paying cash dividends. PROBLEM 13-2 FLOTATION COSTS AND ISSUE SIZE DATA Needs to raise 10,000,000 Mrkt price 120.00 Flotation Costs $15.00 Net Price= 105.00 Dollar size = How many shares=

 

Paper#5285 | Written in 18-Jul-2015

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