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A Company with a capital of $250,000. And has a target capital structure of 55% equity and 45% debt. The forecasted net income is $180,000.
A Company with a capital of $250,000. And has a target capital structure of 55% equity and 45% debt. The forecasted net income is $180,000.
- based on the net income of $180,000 calculate the residual income?
- Get the target pay out ratio?
if the organizations forecasted income $100,000.
- if the net income has dropped to $100,000 what do your suggest to the management and what they should do?
- Advise the management of the company about various dividend policies?
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