Question: I need help with 14-1,14-4 & 14-5 only please thank you (14-1) Residual Distribution Model EASY PROBLEMS 1-5 Puckett Products is planning for $5 million
I need help with 14-1,14-4 & 14-5 only please


thank you
(14-1) Residual Distribution Model EASY PROBLEMS 1-5 Puckett Products is planning for $5 million in capital expenditures next year. Puckett's target capital structure consists of 60% debt and 40% equity. If net income next year is! $3 million and Puckett follows a residual distribution policy with all distributions as dividends, what will be its dividend payout ratio? (14-2) Petersen Company has a capital budget of $1.2 million. The company wants to maintain ote that IS CUIU opportunities, and it wishes to maintain its existing av ldliU. NILU distribution model (assuming all payments are in the form of dividends), how large should Wei's dividend payout ratio be next year? (14-4) Repurchase A firm has 10 million shares outstanding with a market price of $20 per share. The firm has $25 million in extra cash (short-term investments) that it plans to use in a stock repurchase; the firm has no other financial investments or any debt. What is the firm's value of operations, and how many shares will remain after the repurchase? (14-5) Stock Split JPix management is considering a stock split. JPix currently sells for $120 per share and a 3-for-2 stock split is contemplated. What will be the company's stock price following the stock split, assuming that the split has no effect on the total market value of JPix's equity
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
