Question: Please show detailed excel calculations Problem 1 David Rose Inc. forecasts a capital budget of $500,000 next year with forecasted net income of $400,000. The

Please show detailed excel calculations

Problem 1

David Rose Inc. forecasts a capital budget of $500,000 next year with forecasted net income of $400,000. The company wants to maintain a target capital structure of 30% debt and 70% equity. If the company follows the residual dividend policy, how much in dividends, if any, will it pay?

Problem 2

The following data apply to Elizabeth's Electrical Equipment:

All inputs are in millions
Value of operations	$20,000
Short-term investments	$1,000
Debt	$6,000
Number of shares	300

The company plans on distributing $50 million by repurchasing stock. Calculate what the intrinsic stock price per share will be immediately after the repurchase.

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