Cargo Inc. which is subjected to a 20% tax rate employs a residual dividend policy to its
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Cargo Inc. which is subjected to a 20% tax rate employs a residual dividend policy to its ordinary shareholders. The expected before-tax net income for the year is P2,500,000. The firm will retain a 75% plow-back ratio. International Cargo Inc. is funded only by common equity and debt on which the target debt ratio is 60%. Assuming that the shares of Cargo Inc. have a market price of P35, what is the dividend yield?
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ISBN: 978-0073398242
11th edition
Authors: Ferdinand Beer, E. Russell Johnston Jr., David Mazurek, Phillip Cornwell, Brian Self
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