A company with 800,000 shares outstanding and a target debt-equity ratio of 1.75 expects earnings for the
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Question:
A company with 800,000 shares outstanding and a target debt-equity ratio of 1.75 expects earnings for the coming year to be $10 million. Assume the company follows a strict residual dividend policy and its planned capital expenditures for the coming year are $2.75 million.
1. What will be the dividend per share?
2. How much new debt will be needed?
Related Book For
Financial Accounting
ISBN: 978-1259692390
17th edition
Authors: Jan Williams, Susan Haka, Mark S Bettner, Joseph V Carcello
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