Clynne Resources expects earnings this year to be $2 per share. Clynne plans to pay a dividend

Question:

Clynne Resources expects earnings this year to be $2 per share. Clynne plans to pay a of $0.70 for the year. During the year Clynne expects to borrow $10 million in addition to its already outstanding loan balances. Clynne has 10 million shares of outstanding.
a. If all capital outlays are funded from retained earnings and new borrowings and if Clynne follows a residual policy, what capital outlays are planned for the coming year?
b. What is Clynne’s target given these assumptions?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Capital Structure
Capital 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... 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...