Question: Please answer the question Residual distribution Fifa Co., Led. plans to provide financing to invest in long-term projects, totaling 60 million baht for investment projects

Please answer the question

Please answer the question Residual distributionPlease answer the question Residual distribution
Residual distribution Fifa Co., Led. plans to provide financing to invest in long-term projects, totaling 60 million baht for investment projects with a positive net present value or NPV nextyear. The Company has determined the appropriate capital structure ratio for many years, namely Raise funds from bank loans of 20 percent and raise money from selling common shares. in the remaining proportion The Company had profit before interest and corporate income tax (EBIT) of 82 million baht. In addition, the company It still has total assets of 200 million baht and has a payable interest rate of 13 per annum while the corporate income tax rate is 20 percent. If the company The dividend policy has been set by the method of dividend payment from the residual profit (Residual Dividend Policy) and the company still needs to maintain an appropriate capital structure at the same ratio. 6.1 Instructions: Answer the following questions (Unit: Million Baht) / 6.1.1 DEBT Total Liabilities What is the amount, million baht? 6.1.2 Interest What is the interest expense? 6.1.3 TAX Corporate Income Tax what is the amount 6.1.4 Net Income What is the net profit in million baht? 6.1.5 How much is the project to allocate investment from debt, million baht? 6.1.6 Net profit allocated for investment projects What is the amount, million baht? 6.1.7 Residual dividend, how much is the remaining profit to be allocated as a dividend? 6.1.8 What percentage of the Company's Dividend Payout ratio is ()?6.2 The statement below is about the company's financial structure theory, right or wrong (T or F) / - MM capital structure theory with corporate tax states that when a company increases its borrowing level, the wacc increases. Signaling Theory says managers know more inside information than outsiders. Consequently, bonds are usually sold when they are cheaper than their value. - Growing companies with opportunities to invest in profitable projects should raise capital from issuance rather than debt, according to Pecking order theory Answer. - Trade-off theory states that companies with volatile profitability Funding should be mainly from borrowing. - Trade-off theory states that the value of a company with debt is highest when the average cost of funds is lowest. - Indebted companies reduce agency costs because having debt encourages managers to invest in more lucrative projects

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