Question
1.) The Jampkins Company pays out 40% of its net income as dividends. It expects to earn $2 in net income; the stockholder equity of
1.) The Jampkins Company pays out 40% of its net income as dividends.
It expects to earn $2 in net income; the stockholder equity of lampkins is $10.
Based on these numbers, what is Jampkins expected growth rate?
2.) Sandusky Corp. is forecasting an EPS of $3.00 for the coming year on its 500,000 outstanding shares of stock. Its capital budget is forecasted at $800,000, and it is committed to maintaining a $2.00 dividend per share. It finances with debt and common equity, but it wants to avoid issuing any new common stock during the coming year. Given these constraints, what percentage of the capital budget must be financed with debt? 3.) Bisquick forecasts a capital budget of $725,000. The CFO wants to maintain a target capital structure of 45% debt and 55% equity, and she also wants to pay a dividend of $500,000. If the company follows the residual dividend model, how much income must it eam, and what will its dividend payout ratio be?
4.) Bunkington Products recently completed a 9-for-2 stock split. Prior to the split, its stock sold for $220 per share. What is the new price per share after the split?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
1 Jampkins Company Growth Rate Unfortunately the information provided net income 2 dividend payout ratio 40 and stockholder equity 10 is insufficient ...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started