FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Acompany has an ROE of 10%, a piowback ratio of 25% and a cost of captal of 12%. As CFO of the company, you have

image text in transcribed
Acompany has an ROE of 10%, a piowback ratio of 25% and a cost of captal of 12%. As CFO of the company, you have to make a choice about the dividend payout ratio of the firm. According to the intormation provided, you should Increase the Dividend Payout Ratio Not enough informatica to say Decrease the Dividend Payout Ratio Keop the Dividend Payout Ratio unchanged

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Money And Capital Markets

Money And Capital Markets

Authors: Peter Rose, Milton Marquis

10th Edition

0077235800, 9780077235802

More Books

Students also viewed these Finance questions

Question

★★★★★
We noted that, when calculating EVA, you should calculate income as the sum of the aftertax interest payment and net income. Why do you need to deduct the tax shield? Would an alternative be to use a...

Answered: 1 week ago

Question

★★★★★
The answersE1=1.63*10^5 N/ =1.15*10^5 N/C E3=1.32*10^5 N/C are all wrong. A 10-cm-long thin glass rod uniformly charged to 7 00 nC and a 10-cm-long thin plastic rod uniformly charged to -7:00 nC are...

Answered: 1 week ago

Question

★★★★★
How do people make decisions when presented with information that contradicts their beliefs?

Answered: 1 week ago

Question

★★★★★
Killys Baskets has the following current year costs: Variable costs ......... $6 per unit Fixed costs ........... $7,000 Killy and a key supplier have entered into an arrangement that will result in...

Answered: 1 week ago

Question

★★★★★
(e) Lorge Corporation has collected the following information after its first year of sales. Sales were $1.575,000 on 105,000 units: selling expenses $250,000 (40% variable and 60% fixed); direct...

Answered: 1 week ago

Question

★★★★★
Problem 1 Use Jensen's inequality to prove that if the fourth moment is finite then the first and second moments are also finite: (a) [E(X)] E (X). 2 (b) [E (X)] E (X).

Answered: 1 week ago

Question

★★★★★
The Alpine House, Incorporated, is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Sales Selling price per pair of skis Variable...

Answered: 1 week ago

Question

★★★★★
Ocean Fishers Ltd had a 22-foot fishing boat with an inboard motor that was purchased on April 9, 2015, for $74,000. The PPE subledger shows the following information regarding the boat b....

Answered: 1 week ago

Question

★★★★★
A spaceship is orbiting around the Earth. The mass of Earth is 5.98 x 1024 kg, and the mass of the spaceship is 8600 kg. Let R be the distance from the center of Earth. If this distance changes from...

Answered: 1 week ago

Question

★★★★★
5. Two events occur at positions on the x-axis separated by a distance of Ax and by a time interval of At, according to one observer (Ann). Ann notes that when the first event occurs (a flash of...

Answered: 1 week ago

Question

★★★★★
A transverse mechanical wave is traveling along a string lying along the x-axis. The displacement of the string as a function of position and time, y(x, t), is described by the following equation:...

Answered: 1 week ago

Question

★★★★★
5. Discuss at least four procedural suggestions for managing dismissals effectively.pg 87

Answered: 1 week ago

Question

★★★★★
1. Is Jennifer right about the need to evaluate the workers formally? The managers? Why or why not?pg 87

Answered: 1 week ago

Question

★★★★★
1. Describe a comprehensive approach to retaining employees.pg 87

Answered: 1 week ago

Previous Question Next Question