Question: Suppose a firm has a retention ratio of 60 percent
Suppose a firm has a retention ratio of 60 percent, net income of $35 million, and 140 million shares outstanding. What would be the dividend per share paid out on the firm’s stock?
Relevant QuestionsShow mathematically that, with a tax rate on both dividends and capital gains of 5 percent, it doesn’t matter whether earnings are paid out as dividends or kept in the firm to cause g to grow for a constant-dividend stock. ...What types of programs does the Small Business Administration offer to new and small businesses? Under what conditions would a new or small firm use each program?How does a best efforts underwriting differ from a firm commitment underwriting? If you operated a company issuing stock for the first time, which type of underwriting would you prefer? Why might you still choose the ...Describe the various sources of capital funding available to public firms.Renee’s Boutique, Inc. needs to raise $58 million to finance firm expansion. In discussions with its investment bank, Renee’s learns that the bankers recommend a debt issue with an offer price of $1,000 per bond and they ...
Post your question