Mansker Station Corporation has declared an annual dividend of $0.80 per share. For the year just ended,
Question:
Mansker Station Corporation has declared an annual dividend of $0.80 per share. For the year just ended, earnings were %6.40 per share.
a. What is Mansker Station’s payout ratio?
b. Suppose Mansker Station has 7 million shares outstanding. Borrowing for the coming year is planned at $18 million. What are planned investment outlays assuming a residual dividend policy? What target capital structure is implicit in these calculations?
Capital StructureCapital 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... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... 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 
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th Edition
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
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