15-1 Residual DividendModelAltamonte Telecommunications has a target capital structure that consists of 60% debt and 40% equity.The company anticipates that its capital budget for the upcoming year will be $3,000,000.If Axel reports net income of $2,000,000 and it follows a residual dividend payout policy, what will be its dividend payout ratio?

15-2 Stock SplitEmergency Medical's stock trades at $90 a share.The company is contemplating a 2-for 1 stock split.Assuming that the stock split will have no effect on the market value of its equity, what will be the company's stock price following the stock split?

15-3 Stock Repurchases Beta Industries has net income of $2,000,000, and it has 1,000,000 shares of common stock outstanding. The company's stock currently trades at $32 a share.Beta is considering a plan in which it will use available cash to repurchase 50% of its shares in the open market.The repurchase is expected to have no effect on net income or the company's P/E ratio.What will be Beta's stock price following the stock repurchase?