1) What is the firm's current payout ratio?

2) What proportion of its current cash flow to equity is it paying out as dividends?

3) What would your projected capital expenditure be for next year (i.e Which of the five projects would you accept and why)?

4) The firm's current beta is 1.0, and the current T. Bond rate is 8.5%. ERP is 5.5%. The firm expects working capital to increase $35 million both this year and next.

How much cash will the company have available to pay out as dividends next year? (What is the maximum amount the company can pay out as dividends? )

5) JKL Corporation currently has a cash balance of $100 million (after paying the current year's dividends). If it pays out $125 million as dividends next year, what will its projected cash balance be at the end of the next year?

JLChem Corporation, a chemical manufacturing firm with changing investment opportunities, is considering a major change in dividend policy. It currently has 50 million shares outstanding and pays an annual dividend of $2 per share. The firm current and projected income statement are provided below (in millions): Current Next year EBITDA 1200 1350 -depreciation 140 175 EBIT 1000 1100 -Interest Expense 200 200 EBT 800 900 - Taxes 320 360 Net Income 480 540 The firm's current capital expenditure is $ 350 million. It is considering five projects for the next year: Project Investment Beta IRR A $100 mil 0.6 12.00% B $200 mil 0.8 12.00% $143 mil 1 14.50% D $200 mil 1.2 15.00% E $100 mil 1.5 20.00% The firm's current beta is 1.0, and the current T. Bond rate is 8.5%. ERP is 5.5%. The firm expects working capital to increase $35 million both this year and next. JLChem Corporation, a chemical manufacturing firm with changing investment opportunities, is considering a major change in dividend policy. It currently has 50 million shares outstanding and pays an annual dividend of $2 per share. The firm current and projected income statement are provided below (in millions): Current Next year EBITDA 1200 1350 -depreciation 140 175 EBIT 1000 1100 -Interest Expense 200 200 EBT 800 900 - Taxes 320 360 Net Income 480 540 The firm's current capital expenditure is $ 350 million. It is considering five projects for the next year: Project Investment Beta IRR A $100 mil 0.6 12.00% B $200 mil 0.8 12.00% $143 mil 1 14.50% D $200 mil 1.2 15.00% E $100 mil 1.5 20.00% The firm's current beta is 1.0, and the current T. Bond rate is 8.5%. ERP is 5.5%. The firm expects working capital to increase $35 million both this year and next