1). Suppose a firm has a retention ratio of 50 percent, net income of $35.1 million, and 145 million shares outstanding. What would be the dividend per share paid out on the firm's stock?

Dividend per share?

2). Suppose that Lil John Industries' equity is currently selling for $33 per share and that 2.6 million shares areoutstanding.The firm also has 56,000 bonds outstanding, which are selling at 103 percent of par.Assume Lil John was considering an active change to its capital structure so that the firm would have a (D/E) of 1.4.

Which type of security (stocks or bonds) would it need to sell to accomplish this?

sell bonds and buy back stockorsell stocks and buy back bonds?

How much would the firm have to sell?(Enter your answer in dollars not in millions. Do not round intermediate calculations and round your final answer to 2 decimal places.)

Selling Amount?

3). Harper's Dog Pens, Inc. with the help of its investment bank, recently issued $197.7 million of new debt. The offer price on the debt was $1,000 per bond and the underwriter's spread was 4 percent of the gross proceeds.

Calculate the amount of capital funding Harper's Dog Pens raised through this bond issue.(Enter your answer in dollars not in millions.)

Funds received?

4). Husker's Tuxedo's, Inc. needs to raise $258 million to finance its plan for nationwide expansion. In discussions with its investment bank, Husker's learns that the bankers recommend an offer price (or gross price) of $30 per share and they will charge an underwriter's spread of $2.15 per share.

Calculate the net proceeds per shareto Husker's from the sale of stock.(Round your answer to 2 decimal places.)

Net Proceeds _______ per share?

How many shares of stock will Husker's need to sell in order to receive the $258 million needed?(Round your final answer to the nearest whole number.)

Number of shares sold ______ shares?

5). Suppose a firm pays total dividends of $344,000 out of net income of $4.3 million. What would the firm's payout ratio be?(Round your answer to 2 decimal places.)

Payout ratio?