Blizzard Corporation has declared an annual dividend of $1.60 per share. For the year just ended, earnings
Question:
Blizzard Corporation has declared an annual dividend of $1.60 per share. For the year just ended, earnings were $7.62 per share.
a. What is Blizzard’s payout ratio?
b. Suppose Blizzard has 6.5 million shares outstanding. Borrowing for the coming year is planned at $19 million. What are planned investment outlays assuming a residual dividend policy? What target capital structure is implicit in these calculations?
Capital StructureCapital structure refers to a company’s outstanding debt and equity. The capital structure is the particular combination of debt and equity used by a finance its overall operations and growth. Capital structure maximizes the market value of a... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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a The payout ratio is the dividend per share divided by ...View the full answer
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Related Book For 
Essentials Of Corporate Finance
ISBN: 9780073405131
6th Edition
Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan
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