Pierre Imports has a capital budget of $20 million. It wants to maintain a capital structure of

Question:

Pierre Imports has a capital budget of $20 million. It wants to maintain a of 45 percent debt and 55 percent equity. This year it expects net income of $8 million. The company has 30 million authorized shares, and 10 million are outstanding. Last year the company paid a of $0.30 per share.
How much equity is required?
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...