Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
ABC inc has a capital budget of $120 million. It's target capital structure is 30% debt and 70% equity. It has forecasted a net income
ABC inc has a capital budget of $120 million. It's target capital structure is 30% debt and 70% equity. It has forecasted a net income of $150 million. The company has 100 million shares outstanding. Using the distribution model, what is the dividend payout ratio and how much can ABC inc. pay out in dividends per share?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started