Question
4) Metronic firm has $70M in equity and $30M in debt and forecasts $14M in net income for the year. It currently pays dividends equal
4) Metronic firm has $70M in equity and $30M in debt and forecasts $14M in net income for the year. It currently pays dividends equal to 20% of its net income. You are analyzing a potential change in payout policy -an increase in dividends to $30% of net income. How would this change affect your internal and sustainable growth rates? Please show process preferably through Excel
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
5th Global Edition
1292437154, 978-1292437156
