1 Quick Take Residual Dividend Model 2 Learn Residual Dividend Model 3 Practice Residual Dividend Model STEP 3 of 3 Now it's time for you to practice what you've learned Seifert Company is considering three independent projects, each requiring $8 million in investment The estimated internal rate of return (IRR) and cost of capital for these projects are shown in the following table IRR Cost of Capital 17 00 19 00 Project Project H Project M Project L 14 00 16 00 12 00 10 00 The optimal capital structure for the company consists of 40 00 debt and 60 00 equity The company expects to have net income of $15,000,000 00, and is seeking to estimate its dividend payout ratio if dividends are established from the residual dividend model Given the optimal percentage of equity, this means that of The required capital budget for these projects is equity will be required to fund these projects Assume that Seifert uses the residual dividend model Seifert's dividend payout ratio will be if it follows the residual dividend model Grade Final Step

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1  Quick Take  Residual Dividend Model 2  Learn  Residual Dividend Model 3  Practice  Residual Dividend Model STEP  3 of 3 Now it's time for you to practice what you've learned  Seifert Company is considering three independent projects, each requiring $8 million in investment  The estimated internal rate of return (IRR) and cost of capital for these projects are shown in the following table  IRR Cost of Capital 17 00  19 00  Project Project H Project M Project L 14 00  16 00  12 00  10 00  The optimal capital structure for the company consists of 40 00  debt and 60 00  equity  The company expects to have net income of $15,000,000 00, and is seeking to estimate its dividend payout ratio if dividends are established from the residual dividend model    Given the optimal percentage of equity, this means that of The required capital budget for these projects is equity will be required to fund these projects  Assume that Seifert uses the residual dividend model  Seifert's dividend payout ratio will be if it follows the residual dividend model  Grade Final Step

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1. Quick Take: Residual Dividend Model 2. Learn: Residual Dividend Model 3. Practice: Residual Dividend Model STEP: 3 of 3 Now it's time for you

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