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Constructo Inc. estimates its operations next year: Sales $5,800,000 Depreciation $575,000 After all other expenses, interest ant taxes, their net income is $139,000. The company
Constructo Inc. estimates its operations next year:
Sales $5,800,000
Depreciation $575,000
After all other expenses, interest ant taxes, their net income is $139,000.
The company has 50,000 common shares outstanding (no preferred) valued at $18.50 per share.
How much cash is available for reinvestment if payout ratio is 11%?
Hint: cash available is NOT just the retained earnings
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