Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Given the economic downturn due to COVID-19, Orange Computers only expects $$51.451.4 millions of earnings at the end of the 20212021 financial year. The company

image text in transcribed

Given the economic downturn due to COVID-19, Orange Computers only expects $$51.451.4 millions of earnings at the end of the 20212021 financial year. The company would reinvest a part of the earnings in a new software project while paying out 59.059.0% in dividends. The new project is forecasted to have a return on investment of 14.014.0% annually.

What will be the expected total dividends in the 20222022 financial year if the cost of capital is 12.512.5% and the expected dividend payout would be 47.047.0% for that year?

The expected total dividends in the 20222022 financial year will be $$ millions. (Give answer to 2 decimal places).

Given the economic downturn due to COVID-19, Orange Computers only expects $51.4 millions of earnings at the end of the 2021 financial year. The company would reinvest a part of the earnings in a new software project while paying out 59.0% in dividends. The new project is forecasted to have a return on investment of 14.0% annually. What will be the expected total dividends in the 2022 financial year if the cost of capital is 12.5% and the expected dividend payout would be 47.0% for that year? The expected total dividends in the 2022 financial year will be $ millions. (Give answer to 2 decimal places). Given the economic downturn due to COVID-19, Orange Computers only expects $51.4 millions of earnings at the end of the 2021 financial year. The company would reinvest a part of the earnings in a new software project while paying out 59.0% in dividends. The new project is forecasted to have a return on investment of 14.0% annually. What will be the expected total dividends in the 2022 financial year if the cost of capital is 12.5% and the expected dividend payout would be 47.0% for that year? The expected total dividends in the 2022 financial year will be $ millions. (Give answer to 2 decimal places)

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

Real Options In Theory And Practice

Authors: Graeme Guthrie

1st Edition

0195380630, 978-0195380637

More Books

Students also viewed these Finance questions

Question

Decide when, where, and how you will meet.

Answered: 1 week ago