Corporate Cash Flows Strang plc raised 2 million in equity financing last year. This year, they were

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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.

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Fundamentals Of Corporate Finance

ISBN: 9780077178239

3rd Edition

Authors: David Hillier, Iain Clacher, Stephen A. Ross

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