Super Fast Company has capital projects of $ 7,000,000 in year 2009. The company has 50% debt,
Question:
Super Fast Company has capital projects of $ 7,000,000 in year 2009.
The company has 50% debt, 50 equity capital structure policy.
The net income for the year 2008 will be $4,500,000.
The company follows residual dividend policy.
Required:
1. Amount that will be paid as dividend
2. Dividend Payout ratio.
Capital structure refers to a company’s outstanding debt and equity. The capital structure is the particular combination of debt and equity used by a finance its overall operations and growth. Capital structure maximizes the market value of a... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Related Book For 
Financial Accounting Information For Decisions
ISBN: 978-0324672701
6th Edition
Authors: Robert w Ingram, Thomas L Albright
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