1. Randy Corporation has a capital budget of 324.0 and and a Net Income of 18.0. If Randy's target equity fraction is 0.1, what should Randy's dividend be under the residual dividend model.

2. Due to a declining stock price and the possibility of being delisted from an exchange, Hubbell corporation undergoes a reverse 5 to 1 stock split. If Hubbell initially has 490 shares, how many shares does Hubbell have now,

3. Spraggins Inc. has a new capital budget for next year of 911,000 and has a target debt fraction of 0.25. If the firm following the residual dividend policy and wants to retain its target capital structure, what must its retained earning be next year.

4. Ebeling Inc. undergoes a 5 for 1 stock split. If the company's stock trades for 214 dollars per share before the split and the value of the company does not change due to the split, what is Ebeling's new stock price.

5. Suppose we live in a world in which Modgliani Miller is true, that is no information or tax issues and capital structure is irrelevant. A firm currently has 1,000 shares outstanding, each with a price of $14.5. The firm announces that it will pay a dividend of $2.70 per share. What will be the price of a share ex-dividend after dividend has been paid.