Corporate Cash Flows Strang plc raised 2 million in equity financing last year. This year, they were
Question:
Corporate Cash Flows Strang plc raised £2 million in equity financing last year. This year, they were able to earn a net 10 per cent on these funds. The company pays a 23 per cent tax on earnings and has a 75 per cent pay-out ratio. How much money did it pay in taxes and dividends?
How much did it retain for future operations? Note: taxes are always paid before dividends.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780077178239
3rd Edition
Authors: David Hillier, Iain Clacher, Stephen A. Ross
Question Posted: