1 If the Company ABC has 70% Debt; 30% Equity; Capital budget = $3,000,000; and NI = $2,000,000; using residual dividend model, what is the Companys dividend payout ratio (PO)?

2 If the Company XYZs current stock price (P₀₎ = $90, and will conduct a 3 for 2 split; what will be the New stock price after split?

3 If the Company ABC has the following financial information:

Net Income (NI) = $2,000,000; Shares of outstanding = 1,000,000; current stock price (P₀₎ = $32; Repurchase ratio = 20% of the total shares of outstanding; what would be the Companys new stock price (New P₀)?

4 If the Company XYZ has a debt ratio of 40%, dividend payout ratio of 45%, Net Income $5,000,000, new investment (capital budget) $10,000,000. What is the Companys new external equity needed?