Question: 3. A Telecommunications has a target capital structure that consists of 60 percent debt and 40 percent equity. The company anticipates that its capital budget

3. A Telecommunications has a target capital structure that consists of 60 percent debt and 40 percent equity. The company anticipates that its capital budget for the upcoming year will be $4,000,000. If Axel reports net income of $3,000,000 and it follows a residual dividend payout policy, what will be its dividend payout ratio?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

If the dashpot has a damping coefficient of c = 50 N s/m, and the spring has a stiffness of k = 600 N/m, show that the system is underdamped, and then find the pendulum's period of oscillation. The...

(a) ABC Company has a target capital structure that consists of 60 percent debt and 40 percent equity. The company anticipates that its capital budget for next year will be $2 million. What is the...

Tucson Company is an MNC that can borrow at an interest rate of 10 percent. It has determined its cost of equity to be 14 percent. Its tax rate is 40 percent. It has a target capital structure that...

Power X is a utility company in the Midwest. It's revenues and profitability have been rather stable and are growing at a slow but steady pace. Therefore, Power X is building its cash balances on its...

A Telecommunications has a target capital structure that consists of 55 percent debt and 45 percent equity. The company anticipates that its capital budget for the upcoming year will be $5,000,000....

1.) Telecommunications has a target capital structure that consists of 70 percent debt and 30 percent equity. The company anticipates that its capital budget for the upcoming year will be $6,000,000....

Axel Telecommunications has a target capital structure that consists of 70 percent debt and 30 percent equity. The company anticipates that its capital budget for the upcoming year will be...

Axel Telecommunications has a target capital structure which consists of 70 percent debt and 30 percent equity. The company anticipates that its capital budget for the upcoming year will be...

A Telecommunications has a target capital structure that consists of 70 percent debt and 30 percent equity. The company anticipates that its capital budget for the upcoming year will be $6,000,000....

Axel Telecommunications has a target capital structure that consists of 70 percent debt and 30 percent equity. The company anticipates that its capital budget for the upcoming year will be...

On 1 January 2018, financial assets were $40,000 of which shares valued at $10,000 and the remainder are currency and deposits. Short term and long-term liabilities were $4000 and $6000,...

Is Southern Pacific strictly liable? Should the government be liable? How could Southern Pacific have protected itself against a lawsuit? What if, instead of bombs exploding, chemicals were spilled...

What is the WACC ( Weighted Average Cost of Capital ) for this company? 9 . 9 4 % 1 0 . 5 3 % 1 3 . 6 3 % 1 4 . 7 5 %

10) For a bond that pays cash interest (i.e., not a zero coupon bond), YTM is (a) always equal to the coupon rate (b) always equal to the current yield (c) is always less than the coupon rate (d) can...

c. What groups were least represented? Why do you think this is so?

7. Describe phases of multicultural identity development.

1. Stereotypes in Your Life. List some of the stereotypes you have heard about U.S. Americans. Then answer the following questions: